Excess Roth IRA contributions

Posted by Mike Einhorn on May 25, 2007, 10:50 pm

Please log in for more thread options

I am looking for some help with excess Roth contributions.

We contributed the maximum amount to our Roth last year and
on tax time found that our modified AGI fell in the band
that requires a reduced contribution. Using the IRS pub 560
I calculated the amount that I needed to withdrawl and did
so.

My IRA provider gave me the excess earnings. Following a
thread I saw here earlier I then made up a 1099-R form in
Turbo Tax and tried to enter these earnings to account for
them in my return. The problem is that when I do that it
pushes my modified AGI higher which then further decreases
the amount I can contribute to my Roth IRA. Was I supposed
to account for these additional earnings when I did the
excess contribution calculation earlier? I am not sure how
to proceed from here?

Appreciate any assistance someone might provide.

Thanks,

Mike Einhorn

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>