Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Okay, DH and I each opened IRA's a while back (read: several years) but so far we had only contributed to his. Mine, of course, got hit with annual service fees and had no cash in there to cover them. I deposited $50 to cover those for the next x years.

This year we also opened RIRA's (which I intend to contribute to - honest!).

But here's the problem:
In reading more, I discovered that while we WERE eligible when we opened the IRA's, we no longer are.

Question 1:
How much trouble am I in for putting money in the IRA (that I'm not eligible to contribute to)? I have no intention of deducting it on my taxes, so does that mean I'm okay?

Question 2:
Since (God willing and the creek don't rise) our income will never again be low enough to qualify, is there any reason on earth I should keep my IRA open? And since it has less that $50 in it, do I care?

Question 3:
Since DH has a few thousand in his, of course I don't need to close it. But I'm thinking it might be better to convert it.

Question 4:
If I don't convert it, how do I pay annual fees without getting zapped for contributing to an IRA?

TIA,
Frydaze1
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.