ive been tax every year with my roth ira even i dont contribute
I regulary contribute to my roth ira.Last contribution I did 3 years ago and I don’t know that may income will be high that year but I contribute every year the first month .Every year after that im paying tax for the roth ira even I don’t contribute may income is high.Question is do I pay taxes on that roth ira every year my tax preparer always add that tax.thanks
Permalink Submitted by Alan - IRA critic on Tue, 2014-09-02 00:45
The only tax you could be paying without taking distributions is the 6% excise tax for excess Roth contributions made in some prior year and not corrected. There are two ways that this tax could be automatically eliminated. First, in any year after the excess contribution that you are eligible to make a contribution (eg your income was NOT too high) and you do not, the excess is corrected on Form 5329. The other way is to take a distribution of the excess amount. Is Form 5329 being filed on your return, and if so what does it say?