hi ,new fool here.but, my problem is I opened a roth ira account for my self about three years ago and putting in 3000 a year.two years ago got married and since my wife also can contribute to roth ira , deposited her amount also in my account.now i realised my mistake but can any one tell me how to undo the damage.now my wife has her own roth ira account but can any one tell me how to transfer the money from my account to her roth ira account.what forms need to be filled with irs or do i need to bother about all that or just go ahead and transfer the money.thanks.
Hi yskesa,You may find that the Tax Strategies board will be better able to find the answer to your problem: http://boards.fool.com/Messages.asp?bid=100155Good luck!-Chuck
Hi yskesa,I got caught in a similiar situation 2 years ago when I made full contributions to a Rost and a non-deductible IRA. A tax professional can assist you in undoing this mess, but here is the gist of what I found out in my own situation:You can't "transfer" any of the money from your Roth to your spouse's Roth. Instead you have to "remove" all of the excess contributions from your Roth and pay some penalties to the IRS. If you haven't contributed the full amount to your Roth in any of the past years since you "over-contributed", you may be able to "re-characterize" some of the excess contributions from previous years to fill in the missing contributions, even for the current year. However, you will still have to pay the IRS penalties for the years and amounts when there was excess contributions in the account.As I said in the beginning, best to get professional help. The penalties will probably only be a couple of hundred dollars.
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