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In going back over this before posting I saw another way to interpret this last question. Remember that she is limited to a total of $2,000 in IRA contributions, Roth and traditional combined.

Phil,

Thanks for the response. So she can't do $2000 to the Roth, plus $2000 to a regular IRA as a non-deductible contribution? (I did look for this answer in "All About IRAs" but didn't find it.)

That has to be undone, if both contributions were for the year 2000. She needs to withdraw the excess contribution and the earnings on it. She'll have to pay a 10% penalty on the earnings, but will avoid the 6% penalty on the whole thing.

Is this if she withdraws the Roth or the traditional? Or does it matter?

Thanks,
John
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