Mothering Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
2,556 Posts
Discussion Starter #1
I put on my taxes that I put some money into my Roth IRA for the 2006 tax year.. and I was GOING TO!! But then things came up and I never actually got to the place to drop off my check before the 17th, so the money is now going in as a 2007 contribution.<br><br>
Do I need to send an amended tax thing? I *thought* Roth IRA doesn't matter for tax purposes because it's post-tax money but then why did they ask about 2006 contributions on my 2006 taxes? Thanks!
 

·
Registered
Joined
·
385 Posts
You are limited in how much you can contribute to a Roth IRA in any given year. Max is $4,000, it also adjust downwards if your income is above a certain phase-out limit. There is a 6% penalty for going over this limit. That’s why they ask the question. Not much you can do about it, it will just limit what you can contribute this year. I don't think there is any need to amend your 2006 return.
 

·
Registered
Joined
·
2,556 Posts
Discussion Starter #3
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>Learnintolaugh</strong> <a href="/community/forum/post/7906932"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">You are limited in how much you can contribute to a Roth IRA in any given year. Max is $4,000, it also adjust downwards if your income is above a certain phase-out limit. There is a 6% penalty for going over this limit. That’s why they ask the question. Not much you can do about it, it will just limit what you can contribute this year. I don't think there is any need to amend your 2006 return.</div>
</td>
</tr></table></div>
AHH that makes sense <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile"> Yes, it's only a few hundred dollars so not a big difference. Thanks <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile">
 

·
Registered
Joined
·
8,198 Posts
This is an interesting question. I'd probably see if I could get some advice from a tax accountant just to be on the safe side. Please let us know what you find out, if you do.
 

·
Registered
Joined
·
1,346 Posts
First question: How did you do your taxes? Did you answer the question on a computer program or did you ACTUALLY HAVE ON YOUR TAX FORM your contribution amount. If your contribution amount went on the tax form somewhere, you probably were putting it down as a traditional not a Roth. If it was a tax program, it PROBABLY just wanted to make sure you weren't putting too much in. There's also a notation you can send to the IRS letting them know how much you're putting in your Roth so that they know how much to tax you on if you take it out early.<br><br>
Say I put in $5000 ten years ago. I'm 35 now and want to take it out. Well now it's worth $5200. I have to pay taxes on the $200. So accidentally saying you put in too much won't affect you until you take it out, you may need to do some explaining to put things right if you take it out early.<br><br>
But my BIG concern is that you didn't accidentally list it as a contribution to a traditional. That would be a big problem.
 

·
Registered
Joined
·
2,556 Posts
Discussion Starter #6
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>Gendenwitha</strong> <a href="/community/forum/post/7925477"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">First question: How did you do your taxes? Did you answer the question on a computer program or did you ACTUALLY HAVE ON YOUR TAX FORM your contribution amount. If your contribution amount went on the tax form somewhere, you probably were putting it down as a traditional not a Roth. If it was a tax program, it PROBABLY just wanted to make sure you weren't putting too much in. There's also a notation you can send to the IRS letting them know how much you're putting in your Roth so that they know how much to tax you on if you take it out early.<br><br>
Say I put in $5000 ten years ago. I'm 35 now and want to take it out. Well now it's worth $5200. I have to pay taxes on the $200. So accidentally saying you put in too much won't affect you until you take it out, you may need to do some explaining to put things right if you take it out early.<br><br>
But my BIG concern is that you didn't accidentally list it as a contribution to a traditional. That would be a big problem.</div>
</td>
</tr></table></div>
We used TaxCut, and yes I am positive I marked it as Roth IRA <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile"><br><br>
I called my investment firm and he confirmed that I don't need to resubmit anything. He had me look at my tax return and the money I reported that I deposited didn't actually go anywhere on the form, so I think you are right that it just was making sure I didn't over-contribute (we did run into that problem last year as I recall, because we were living overseas and still contributing to our Roths. Kind of tricky).<br><br>
Anyway, thanks!!
 
1 - 6 of 6 Posts
Top