What is the penalty for making a 2011 ROTH IRA contribution without having earned any taxable income in 2011?
Asked by: megan
I’ve contributed the maximum of 5K into my Roth IRA this year, but unfortunately I’ve moved abroad and will likely not have the opportunity to earn that 5K in taxable earnings in the US during this year. As far as I know, you must have earned at least as much as you contribute in order to invest in your IRA during that given year.
I’ve asked my accountant about what I should do and he said I would have to speak with my investment house and ask them how I go about withdrawing that 5K from my account.
Does anyone have any insight into this predicament I’m in?
Is there an IRS penality? How exactly does one decide how the 5K comes out after its already been invested?
Thanks in advance!!!