Roth Ira contribution with Income over 100k
I have a client who made a Roth IRA contribution in January of this year (2007) and realized that his AGI will be over 100k this year – can he just pull that money out of that account (it was an existing Roth account) and if os how will the custodian determine what those dollars gain/loss were?
Permalink Submitted by Alan Spross on Thu, 2007-12-06 00:08
Evidently he is single, as the phaseout range for a single filer in 2007 is 99,000 to 114,000 in modified AGI. If his modified AGI is too high for even a partial contribution, then he must correct the contribution by withdrawing it including allocated income. The income will be subject to tax and penalty, and can be calculated by the IRA custodian in most cases. When the contribution is added to a current IRA account, the entire investment experience of the account must be factored in, and the worksheet that applies is in Pub 590, p 32.