- Joined
- Dec 26, 2012
- Messages
- 10
- Reaction score
- 0
During 2011 I made a $6,000 Roth IRA contribution (for tax year 2011) early in the year, expecting to earn well below the cutoff range for Roth contributions.
Things changed, and my income was too high for the entire $6K to be eligible for the Roth (was qualified to contribute only about $3K).
Not understanding the rules well at the time, I paid the excise tax (it may no longer be called that) on about $3K of the original $6K, for the 2011 return at a cost of about $180.
I have no IRA contributions, Roth or Traditional, for 2012. My MAGI for 2012 is about $114K. I have taken no action on this since filing my 2011 return, and am just now filing my 2012 return with an extension.
Q1: Do I owe the excise tax (AKA "excess contributions tax") on the extra $3K for 2012 as well? Or, does the available "space" for Roth contributions cure this issue? (2012 income of $114K should allow for a $3K Roth contribution, for calendar year 2012).
Q2: If this matter was not cured based on the above facts, and the excess contribution tax is owed, again, for 2012, what should I do now to fix this, so that it doesn't come up again?
A review of the 1040 instructions did not yield the answers I was looking for.
Things changed, and my income was too high for the entire $6K to be eligible for the Roth (was qualified to contribute only about $3K).
Not understanding the rules well at the time, I paid the excise tax (it may no longer be called that) on about $3K of the original $6K, for the 2011 return at a cost of about $180.
I have no IRA contributions, Roth or Traditional, for 2012. My MAGI for 2012 is about $114K. I have taken no action on this since filing my 2011 return, and am just now filing my 2012 return with an extension.
Q1: Do I owe the excise tax (AKA "excess contributions tax") on the extra $3K for 2012 as well? Or, does the available "space" for Roth contributions cure this issue? (2012 income of $114K should allow for a $3K Roth contribution, for calendar year 2012).
Q2: If this matter was not cured based on the above facts, and the excess contribution tax is owed, again, for 2012, what should I do now to fix this, so that it doesn't come up again?
A review of the 1040 instructions did not yield the answers I was looking for.