Protect yourself from penalties on your Roth IRA money!

by JD Miller on June 11, 2011

JD Miller CPA
The Trusted Financial Planner

You must act before October 15, 2011!

Here are 2 things you must do to avoid paying penalties on your Roth IRA savings:

  1. Pay taxes on your Roth conversions on time.
  2. Don’t put more money in your Roth IRA accounts than the rules allow.

Protect yourself from penalties on your Roth IRA money!

Here’s some breaking news that can reduce your risk of penalty …

October 15, 2011 is your last day to:

  1. recharacterize your 2010 Roth conversions.
  2. recharacterize your 2010 contributions from a traditional IRA to a Roth IRA.
  3. recharacterize 2010 your contributions from a Roth IRA to a traditional IRA
  4. withdraw your unwanted 2010 contributions.
  5. withdraw excess contributions to avoid the 6% penalty for 2010.


In future posts, I’ll take you through each of these one at a time.

I’ll explain how to avoid a penalty for each of these situations.

You don’t have to pay any of these penalties

…if you know the rules and you follow them.

Your best insurance against paying these penalties is to work with a CPA or other tax professional who understands the penalty rules and the risks and will protect you from these penalties.

Here’s a rule that could save you thousands of dollars and increase your savings.

Don’t pay penalties on your savings.

Every $1,000 your pay in penalties could cost you more than $388 every year after you retire.

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© 2011 J. D. Miller CPA, all rights reserved.

You are free to use this material in whole or in part, as long as you include complete attribution, including live web site link. Please also notify me where the material will appear.

The attribution should read:

“By J. D. Miller CPA. Please visit JD’s web site at:
www.jdmillercpa.com

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