IRA penalties

rbsoul · 10-26-2006, 03:06 AM

anyone ever had to pay any of the IRA penalties explained here? http://www.research401k.com/ira-penalties.html

it says on that article:

"For every year that you make a non-deductible IRA contribution, or take an IRA distribution (withdrawal), you must notify the IRS by filling out the IRS Form 8606 which is available on the IRS website http://www.irs.gov Failure to fill out this form will result in you paying tax on your contributions. Failure to file the Form 8606 completely will result in a $50 penalty.

Also be sure to correctly fill out the Form 8606 as any overstatements will result in a $100 penalty per each overstatement. "

Enigma · 10-26-2006, 05:30 AM

Not sure on what you are trying to ask.

Qtip · 10-26-2006, 09:16 AM

Quote:

Originally Posted by Enigma

Not sure on what you are trying to ask.

I think he was offering information on IRA's. I was doing some research one one of those asset cash protections like the guy from Enron used. Intersting stuff.

Hedwig · 10-26-2006, 01:32 PM

No, if you have a non-deductibel IRA, or if you make withdrawals, you have to file a form. If you don't there is a $50 penalty for failure to file.

I think he was trying to find out if anyone had actually been assessed the penalty.

I don't have a non-deductible IRA and I don't do taxes anymore, so I don't know.

Enigma · 10-27-2006, 10:01 AM

I do taxes.

I strongly discourage my clients NOT to take non-deductable withdrawls.