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I found out very late that I do not qualify for a Roth IRA even though I funded it early in the year never imagining I would go over the limits. Limits alow only $240 in my situation. What is the best way to get the rest out of the Roth assuming I will not break any limits this year. Is applying it to 2001 the best ? I filed an extension, and ran out today to fund a traditional IRA for 2000. All done in haste since I discovered the Roth problem yesterday. I think I've got a mess.

Made worse by acting in haste. Maybe you'll start dealing with your taxes on April 13 next year?

You've made $4,000 of year 2000 IRA contributions, when your limit is $2,000. Here's what I recommend:

1. See if you can change the contribution made today to a year 2001 contribution. This depends on the good graces of your custodian. I suggest going in person, pleading stupidity, and moving up the food chain until you find someone who'll do it for you.

Step two will depend on the outcome of step 1. Let us know how that turns out, and we can then advise of your options with respect to the Roth. Any damage has been done and won't be made worse by taking your time to fix things calmly.

Phil Marti
VITA Volunteer
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