Comments on: Oops, I Contributed Too Much in My Roth IRA http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html Finance, Fitness, Fashion & Fun - the sum of my life. Thu, 09 Sep 2010 23:48:55 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Bob http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html/comment-page-1#comment-62885 Bob Tue, 14 Apr 2009 22:26:46 +0000 http://fabulousfinancials.com/?p=2583#comment-62885 I had the same problem except for slightly more complicated. I tried to do the recharacterization but was informed by Fidelity we couldn't. I also won't have a drop in income next so putting it off till next year won't help either. I took option 2 but fortunately had a loss. Didn't have to claim additional income. I got the check in the mail today. They took 40% for penalties. My question for Fidelity tomorrow is: why 40%? I had the same problem except for slightly more complicated. I tried to do the recharacterization but was informed by Fidelity we couldn’t. I also won’t have a drop in income next so putting it off till next year won’t help either. I took option 2 but fortunately had a loss. Didn’t have to claim additional income.

I got the check in the mail today. They took 40% for penalties. My question for Fidelity tomorrow is: why 40%?

]]> By: finance girl http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html/comment-page-1#comment-53265 finance girl Fri, 30 Jan 2009 23:41:49 +0000 http://fabulousfinancials.com/?p=2583#comment-53265 yep, #4. I personally find the whole 'putting this year's money in last year's taxes' massively confusing; I get that it's an extra incentive but still what a nightmare keeping it all straight. I plan on doing this through April (I make contributions to the IRA every 15th of the month) especially since next year we will not be eligible for a Spousal Roth IRA (hi, that's mine) just traditional nondeductible (for him) and deductible (partially) for me. It's all sort of messy, really, imo. yep, #4. I personally find the whole ‘putting this year’s money in last year’s taxes’ massively confusing; I get that it’s an extra incentive but still what a nightmare keeping it all straight. I plan on doing this through April (I make contributions to the IRA every 15th of the month) especially since next year we will not be eligible for a Spousal Roth IRA (hi, that’s mine) just traditional nondeductible (for him) and deductible (partially) for me.

It’s all sort of messy, really, imo.

]]> By: Debbie M http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html/comment-page-1#comment-53262 Debbie M Fri, 30 Jan 2009 21:49:43 +0000 http://fabulousfinancials.com/?p=2583#comment-53262 If your investments would be in the market, it might be more profitable to invest some of that money early. What if you made regular contributions just for half the year, or contributed only half what you thought you might be able to do, and then topped it off in April? I'd vote for #4 to maximize the total amount that is getting good tax treatment. If your investments would be in the market, it might be more profitable to invest some of that money early. What if you made regular contributions just for half the year, or contributed only half what you thought you might be able to do, and then topped it off in April?

I’d vote for #4 to maximize the total amount that is getting good tax treatment.

]]> By: Jerry http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html/comment-page-1#comment-53200 Jerry Thu, 29 Jan 2009 21:36:52 +0000 http://fabulousfinancials.com/?p=2583#comment-53200 I agree, avoid paying the fines/fees to the fed. It would give me the heebie jeebies as well (I'm so glad someone else uses that phrase!). If you can get some insurance that the same thing will not happen next year, you will be even better off. When I see how taxes are being used lately, it leads me to be less inclined to want to pay extra money to the government at all. Jerry I agree, avoid paying the fines/fees to the fed. It would give me the heebie jeebies as well (I’m so glad someone else uses that phrase!). If you can get some insurance that the same thing will not happen next year, you will be even better off. When I see how taxes are being used lately, it leads me to be less inclined to want to pay extra money to the government at all.
Jerry

]]> By: Gigi http://fabulousfinancials.com/2009/01/oops-i-contributed-too-much-in-my-roth-ira.html/comment-page-1#comment-53198 Gigi Thu, 29 Jan 2009 17:22:49 +0000 http://fabulousfinancials.com/?p=2583#comment-53198 This happened to us last year when we were married. I finally convinced him to contribute $4k and then $3110 came back out. i'm waiting to see how we did this year. This happened to us last year when we were married. I finally convinced him to contribute $4k and then $3110 came back out. i’m waiting to see how we did this year.

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