Q. I accidentally contributed more than $6,000 to my Roth IRS for 2010. I am 61. Am I going to jail?
A. No jail time for this. As a matter of fact you can most likely solve this problem with a call or two. Call your IRA custodian and he or she should be able to walk you through the steps that you need to take.
Generally, the amount that must be withdrawn is computed on Form 5329 Additional Taxes on Qualified Plans (including IRS’s) and Other Tax Favored Accounts. This is a large form not because of the information that goes on it but rather to just fit the title.
If you fail to withdraw the excess contribution you will be liable for a 6% penalty for every year you have over contributed.
Larry Kopsa CPA
