For current IRA mistakes, you can easily prevent the charge. As Sharon Bloodworth, president of White Oaks Wide range Advisors in Minneapolis, notes, you can direct your broker or fund provider to turn around your contribution. As long as you retreat any contribution prior to the due date for filing your tax return for that year including extensions the IRS handles it as if it never occured. You should even pull back anything you earned on the excess contributions. Yet another choice is to have your broker or fund company recharacterize your Roth as a standard nondeductible IRA.
Who Voted for this Story
Pligg is an open source content management system that lets you easily create your own social network.