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I have just realized that the contribtion to my Roth IRA made in Feb. 2000 for the year 2000 exceeds my allowed contribution. I understand my options are to withdraw the excess or pay 6% on it.

The IRA is only 2 years old. The $4000 invested is now worth about $1600. I would have to remove $1200 to make up for my excess contribution. It seems to me that paying $72 for a year or two may be more sensible than withdrawing the excess. I would have the chance of recovering a little of the value and therefore not gutting the IRA.

Any thoughts or opinions on this? Is this reasonable or is there something I'm missing (other than better sense of where to invest my IRA).

I'll appreciate your collective thoughts.
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