HI, I recently saw that i was not eligible for a roth ira..due to the fact that i am married filing single, but i have had a roth ira for about 8 years and want to continue contributing to it..does anyone know what they could do if you contribute if your not eligible???????????
2007-10-30 13:06:40 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
are you sure that you can't == if not ==i learned something new == i would talk to the person who files my taxes!!!
2007-10-30 13:21:27 · answer #1 · answered by Anonymous · 0⤊ 2⤋
NOT eligible means you CAN'T continue contributing to the Roth IRA. You CAN make contributions to a REGULAR IRA. I don't know if you can deduct the contributions, but you can make them.
The IRS charges SEVERE penalties for contributions by ineligible individuals. They are designed to cost you MUCH more than not contributing.
2007-10-30 20:21:17 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Read this article from Suze Orman. It may be a way to "back" into a Roth IRA starting in 2010. She says this past spring, Congress passed a new law that will make it possible for everyone -- regardless of income -- to convert their IRAs into a Roth IRA beginning in 2010. So this may be your way to do it.
2007-10-30 21:25:29 · answer #3 · answered by voluntarheel 5 · 0⤊ 0⤋
My Roth IRA trustee has a form you can submit to "recharacterize" (alter) contributions if you accidently contribute too much. I'm sure most other IRA institutions do the same.
2007-10-30 20:22:29 · answer #4 · answered by npk 7 · 0⤊ 0⤋