Roth Ira Contribution Help

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Topic Author
jim54521
Posts: 3
Joined: Tue Jun 05, 2018 10:35 am

Roth Ira Contribution Help

Post by jim54521 » Fri Dec 28, 2018 11:07 am

If I contribute the 6,000.00 to Roth Ira on January 1st for 2019 year and suddenly need the money I understand I can withdraw the money I put into the roth but not any gains.

My question is if I remove the 6,000 I contributed for 2019 could I add back the 6,000 for 2019 if had the money before the 2019 period ended on tax day or is the contribution for the year a one time thing??

02nz
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Joined: Wed Feb 21, 2018 3:17 pm

Re: Roth Ira Contribution Help

Post by 02nz » Fri Dec 28, 2018 11:17 am

No you cannot "add back" after you withdraw contributions. The ability to contribute for any given tax-year is a one-time deal.

Topic Author
jim54521
Posts: 3
Joined: Tue Jun 05, 2018 10:35 am

Re: Roth Ira Contribution Help

Post by jim54521 » Fri Dec 28, 2018 11:49 am

Thank you!

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Earl Lemongrab
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Joined: Tue Jun 10, 2014 1:14 am

Re: Roth Ira Contribution Help

Post by Earl Lemongrab » Fri Dec 28, 2018 5:51 pm

As I recall, if you request a return of your contribution (which does involve earnings, with tax and possibly penalty on those) then you can make another contribution for the year later.

02nz
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Joined: Wed Feb 21, 2018 3:17 pm

Re: Roth Ira Contribution Help

Post by 02nz » Fri Dec 28, 2018 6:05 pm

I stand corrected. It looks like there are two ways:

- You can do an indirect rollover, essentially "borrow" the money for up to 60 days, and as long as you return the money within that time frame it won't be subject to penalties.

- If you remove the contributions for a given year, you do have until the filing deadline (following April) to make the contributions again.

It does look like there would be extra paperwork involved, so I'd avoid it if you can. But it does appear to be possible.

kaneohe
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Joined: Mon Sep 22, 2008 12:38 pm

Re: Roth Ira Contribution Help

Post by kaneohe » Fri Dec 28, 2018 6:06 pm

EL is correct but you must be very clear that you are withdrawing the specific contributions for the current year (& associated earnings). If you just withdraw funds, they will come from contributions first but not specifically that yr so you will not be able to re-contribute..........so making sure you are clear in what you are doing is critical.

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