Comments on: Correct Excess Contribution in Roth IRA Accounts http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/ Fri, 20 Nov 2009 19:09:54 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: The Sun http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/comment-page-1/#comment-8197 The Sun Tue, 24 Apr 2007 05:16:53 +0000 http://www.thesunsfinancialdiary.com/2007/04/22/correct-excess-contribution-in-roth-ira-accounts/#comment-8197 thc: Thanks for your comments. Actually, I never meant to give anybody any advice because I am not a professional and I don't know enough to give an advice. I can only say from what I know and my own experience, which sometimes is limited. As for this case, when I make IRA contributions before the tax day, I always remember to write on the check which year the contribution is for. If sometimes I forgot, my broker Scottrade would call me for clarification. I don't know exactly what happens at the custodian, but of course they will have records for the contribution year of the fund, as you said for IRS accounting purpose, and I think that's why my broker calls me every time when there's a confusion and that's also the reason I told Yan to give them a call to make sure everything is right. For me, as a contributor, nothing changes on how the money is invested. "Just for your own record-keeping" may not be very accurate in this case, but other than that, is there anything else that's inappropriate or wrong in my answer? If you did notice, please let me know so I can correct it. thc: Thanks for your comments.

Actually, I never meant to give anybody any advice because I am not a professional and I don’t know enough to give an advice. I can only say from what I know and my own experience, which sometimes is limited. As for this case, when I make IRA contributions before the tax day, I always remember to write on the check which year the contribution is for. If sometimes I forgot, my broker Scottrade would call me for clarification. I don’t know exactly what happens at the custodian, but of course they will have records for the contribution year of the fund, as you said for IRS accounting purpose, and I think that’s why my broker calls me every time when there’s a confusion and that’s also the reason I told Yan to give them a call to make sure everything is right. For me, as a contributor, nothing changes on how the money is invested.

“Just for your own record-keeping” may not be very accurate in this case, but other than that, is there anything else that’s inappropriate or wrong in my answer? If you did notice, please let me know so I can correct it.

]]> By: thc http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/comment-page-1/#comment-8195 thc Tue, 24 Apr 2007 04:42:54 +0000 http://www.thesunsfinancialdiary.com/2007/04/22/correct-excess-contribution-in-roth-ira-accounts/#comment-8195 The Sun: You need to be very careful giving advice in an area where you have no real expertise. It's not "just for your own record-keeping", contributions need to be properly coded at the custodian for proper IRS accounting. The Sun: You need to be very careful giving advice in an area where you have no real expertise. It’s not “just for your own record-keeping”, contributions need to be properly coded at the custodian for proper IRS accounting.

]]> By: The Sun http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/comment-page-1/#comment-8145 The Sun Mon, 23 Apr 2007 05:01:38 +0000 http://www.thesunsfinancialdiary.com/2007/04/22/correct-excess-contribution-in-roth-ira-accounts/#comment-8145 From my experience, I don't think there's any problem to make the second check for your 2007 contribution. Usually when you make a contribution before the tax deadline, the fund company may ask you which year the contribution is for because it can go either way. However, whatever contributions you make after the tax deadline can only be for the current year. So if the fund company receives your second check after April 17, there's no reason for them to assume that it is for 2006. To be sure, you may want to call them later to tell them the second check is for 2007. For them, however, they won't do anything differently whether it's for 2006 or 2007. It's just for your own record-keeping so you know you have already made 2007 contributions. From my experience, I don’t think there’s any problem to make the second check for your 2007 contribution. Usually when you make a contribution before the tax deadline, the fund company may ask you which year the contribution is for because it can go either way. However, whatever contributions you make after the tax deadline can only be for the current year. So if the fund company receives your second check after April 17, there’s no reason for them to assume that it is for 2006. To be sure, you may want to call them later to tell them the second check is for 2007. For them, however, they won’t do anything differently whether it’s for 2006 or 2007. It’s just for your own record-keeping so you know you have already made 2007 contributions.

]]> By: Yan http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/comment-page-1/#comment-8143 Yan Mon, 23 Apr 2007 04:44:06 +0000 http://www.thesunsfinancialdiary.com/2007/04/22/correct-excess-contribution-in-roth-ira-accounts/#comment-8143 Talking about IRA. If I were to make an investment before April 17, is it possible to change the type of investment from 2006 to 2007 after it is already made and marked as 2006? I had to send two checks for my traditional 2006 IRA in April because I thought the first one got lost. Apparently the mutual fund management received the check so I called the them asking to discard the second check when they receive it. They made a note on the account but I am afraid they may still deposit it. My bank charges $30 to stop a check payment, so I wouldn't want to do it. However changing 2006 to 2007 for the second check would be OK. Any thought? Talking about IRA.

If I were to make an investment before April 17, is it possible to change the type of investment from 2006 to 2007 after it is already made and marked as 2006?

I had to send two checks for my traditional 2006 IRA in April because I thought the first one got lost. Apparently the mutual fund management received the check so I called the them asking to discard the second check when they receive it. They made a note on the account but I am afraid they may still deposit it.

My bank charges $30 to stop a check payment, so I wouldn’t want to do it. However changing 2006 to 2007 for the second check would be OK. Any thought?

]]> By: thc http://www.thesunsfinancialdiary.com/personal-finance/correct-excess-contribution-in-roth-ira-accounts/comment-page-1/#comment-8079 thc Sun, 22 Apr 2007 15:05:37 +0000 http://www.thesunsfinancialdiary.com/2007/04/22/correct-excess-contribution-in-roth-ira-accounts/#comment-8079 I've nevery really understood this great aversion to fees that so many novice investors have. Isn't performanance all that really matters? I’ve nevery really understood this great aversion to fees that so many novice investors have. Isn’t performanance all that really matters?

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