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Posted by scott on March 6, 2007, 2:10 pm
On Mar 5, 7:18 am, brentrobert...@hotmail.com wrote:
> Background:
>
> I followed some bad Brotherly Trad IRA / Roth IRA advice and over paid
> 4K in 2005 and 4K in 2006 between these two accounts.
>
> Account 1 - Traditional 401k Putnam Account (4k max contributions
> between both accounts per year for 2005/2006) This account was opened
> back in 1990 or so.
> In a nutshell, in 2005 put a maximum of 4K into my Traditional Putnam
> 401k account, and another maximum 4K again in 2006 (4K).
>
> Account 2 - Newly opened ROTH 401 Account in March 2006 (4k max
> contributions between both accounts per year for 2005/2006).
> In another nutshell, I put a maximum of 4K into this newly opened
> Ameritrade Roth IRA the previous year for 2005 and another maximum of
> 4K for 2006.
>
> My tax guy just noticed this and said I have to "recharacterize"
> either the Ameritrade ROTH or the Putnam Trad IRA?
>
> What are my options with these two over payments of 4K in one (or the
> other account)? Take the cash out of one or rollover the cash to the
> future if at all possible (like use it for 2007?), How do I
> recharacterize? Pull it out of one and make it cash? Which one? Roth
> VS Trad IRA .... HELP!
>
> Thank you for you responses and expertise in this overcontibution in
> both Trad IRA and Roth IRA question and the best way to repair the
> damages made.
Hello -
A simple web search will show you what needs to be done. I did this
for you.
http://www.fairmark.com/rothira/excess-annual.htm
Scott
======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for
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