Forumsee logo
Forumsee » Finance and investment » Personal Finance » Read message
RSS: Subscribe to RSS

Excess Contributions to Roth IRA

Bogleheads • View forum - Personal Finance (Not Investing) - www.bogleheads.org
I have spent the last two hours reading every thread I can find on here (Alan S. is a sage), and just want to completely nail down what I've compiled. I'm helping a friend with an issue revolving around contributing to a Roth-IRA for the past few years while making too much money.

Regarding the 2016 contribution, I was going to have this re-characterized as non-deductible. I believe at that point they'd pay taxes on earnings and that's it, as long as they're re-characterized before 10/17.

The treatment for the past years is where I get hung up. I know there's no way to re-characterize, and (I think) obviously it's not rollover eligible, so I believe I'd need to withdraw the entire amount. My friend has been paying the 6% excise yearly. When we distribute it, do I need to worry about 10% excise taxes & income taxes? I've read conflicting information on this and am just not 100% comfortable with a resolution. I believe they'd need to pay 10%+taxes on the earnings as they're under 59.5, but I'm honestly not sure. I believe the basis would come out clean, with no penalties or taxes.

I also believe an 8606 will need to be filed at some point to report the basis.

Thanks in advance for your help.
Date: Jun 20, 2017   


Last videos:

The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
The Money Issue - CBS Sunday morning
Mon Jul 24, 2017 5:05 pm
Mon Jul 24, 2017 5:05 pm
Sound Forge Audio Studio Free Download Full Version
Sound Forge Audio Studio Free Download Full Version
YouWave Emulator Free Download Full Version With Crack
YouWave Emulator Free Download Full Version With Crack
Jihosoft Android Phone Recovery seria
Jihosoft Android Phone Recovery seria

Cars ·
Travel ·
Pets ·
production-frontend