Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 6
The codes 8,1 seem to make it sound like it's a taxable situation. Since I never took a IRA deduction on that excess contribution is it correct that it would be a taxable situation?

Again, I would suggest you sit down with your tax preparer and ask him, as this situation is too complex to try to resolve via message boards or e-mail. There is still information (like dates and which year you were contributing for) missing. And the $1000 in the timeline doesn't match up with the $1800 that you said was on line 1.

That said, if you contributed a total of $6500 in new funds ($1000 originally into the Roth and $5500 more originally into the Traditional), and you were only eligible to contribute $5500, then, yes, you made an excess contribution. Excess contributions can incur taxes and/or penalties, depending on if/how/when they are removed. Again - a situation to discuss with the tax preparer face to face.

AJ
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.