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Subject Author Date
Roth IRA Question panacea42 02-25-2008
Posted by panacea42 on February 25, 2008, 1:27 pm
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 Hello all,

In 2007 I took a distribution from a Roth IRA, which was well below my
previous Roth contributions so it was not taxable.

I've already filed my 2007 taxes, and at the time I did not anticipate
making a Roth contribution for 2007. However, if I do contribute to a
Roth for 2007 (before 4/15), do I need to amend my return to include
this on my 2007 form 8606 even though it will not change my tax
amount?

I'm thinking *technically*, yes, but I would have the form 5498 to
prove I made the 2007 contribution, so I'm not sure how crucial it is.

Thanks!!

--
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<< 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. >>
<< >>
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Posted by Phil Marti on February 25, 2008, 2:41 pm
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> In 2007 I took a distribution from a Roth IRA, which was well below my
> previous Roth contributions so it was not taxable.
>
> I've already filed my 2007 taxes, and at the time I did not anticipate
> making a Roth contribution for 2007. However, if I do contribute to a
> Roth for 2007 (before 4/15), do I need to amend my return to include
> this on my 2007 form 8606 even though it will not change my tax
> amount?

No. Just make sure you adjust your records so you know what your remaining
contribution balance is.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by sandybeth on February 25, 2008, 5:41 pm
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> I've already filed my 2007 taxes, and at the time I did not anticipate
> making a Roth contribution for 2007. However, if I do contribute to a
> Roth for 2007 (before 4/15), do I need to amend my return to include
> this on my 2007 form 8606 even though it will not change my tax
> amount?

I recently dealt with a similar situation. I contacted my tax advisor
and also researched it online. You don't need to report your
contribution. In fact, there is absolutely nowhere on the tax form to
even report it. But the IRS knows you made one (since the fund--or
whatever--you made your contribution to reports it) and will nail you
if it is above what your earnings were for the year, or if your
contribution was over the limit.

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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