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I earned $15,500 from my job in 1999. I had at least $150,000 in capital gains in 1999. Am I eligible to contribute $2,000 to my Roth IRA with that amount of capital gains? I made a $2,000 contibution for 1999 in Jan. 1999. I'm ready to contribute $2,000 for year 2000 now, if I can legally. Thanks
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<< I earned $15,500 from my job in 1999. I had at least $150,000 in capital gains in 1999. Am I eligible to contribute $2,000 to my Roth IRA with that amount of capital gains? I made a $2,000 contibution for 1999 in Jan. 1999. I'm ready to contribute $2,000 for year 2000 now, if I can legally. >>

1999: Your AGI exceeds the limit for Roth contributions. You must either recharacterize it as a traditional IRA contribution or withdraw the contribution and its earnings by the due date of your return.

2000: Each year operates independently, so your 2000 AGI will be all that matters. You still have to deal with that 1999 contribution, i.e. you can't just call that one your 2000 contribution, so go ahead and make your 2000 contribution unless you know that you're going to have another bangup year and cross the limit.

For details see the IRA section of this board's FAQ.

Phil Marti
Tax Preparer
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