Correcting Excess Roth Contributions

[Clocker]

Doing my 2006 taxes, I realized that, based on my MAGI, I contributed too much to my Roth IRA.

I have withdrawn the excess contribution and earnings associated with that excess contribution. The distribution form from my broker had a field that had me fill in the earnings associated with the excess contribution. I guess that is so that can send me a 1099R for 2007 that will show the earnings income associated with the excess contribution and that income amount will be coded 'P' to indicate it is for the previous year (2006).

My question is...how will this affect my 2006 return (if at all)? Will I have to amend my 2006 return next year? Or can the income attributable to the excess contribution just be handled within my 2007 Return using the data on the 2007 1099R I will be getting next year?

[Tim0]

Clocker,

Did you find the answer to your question? Do you need to make any corrections to your 2006 taxes?

I found out I am in the same boat, while doing my taxes this year. I was unaware that most company relocation reimbursements are not tax deductible and count towars your AGI.

I need to withdraw my entire 2006 contributions, and it was suggested I roll them over into a Traditional IRA (I don't have one). But I'm not sure this is the best thing to do. I could contribute it all to my 401k, or just reinvest someplace else.

I'm wondering if anyone has any suggestions here. It really irritates me that reimbursements for hotel temporary living, gas mileage, etc all count towards one's AGI.

BTW - Was it a bit of a PITA trying to determine how much of your earnings in 2006 was earnings from only your 2006 contribution? or the portion of your 2006 contributions for your scenario?

-Tim