Author Topic: IRA  (Read 175 times)

Crissy

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IRA
« on: February 24, 2019, 11:41:04 AM »
So...Iím NOT a financial wizard, but I want to be a good steward of my money. I had HR Block doing my taxes for me for a few years before I left the States. Then, while overseas for the last few years, I used HR Block online and did them myself. I just tried it again myself, but Iím afraid I may have not been reporting my IRAs correctly- and thatís because I donít understand them...
First, there are limits. Why are there limits on how much you can put in both the Traditional and Roth IRAs?  And how much are the limits? Iím less than 50 and hubs turned 50 in 2018.
Second, Iíve been investing through work, but I didnít realize that my savings through work is both types of IRAs- so I havenít been reporting them on my taxes...  Also, I started a Roth IRA for myself through my bank while I was overseas... and now I think I have oversaved. Oversaving is a great thing, but I donít  want to be in trouble with the IRS.  Do I have a problem? 

saddle tramp

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Re: IRA
« Reply #1 on: March 01, 2019, 05:52:24 PM »
Hi Crissy,
There have always been contribution limits limits so no one can avoid income taxes by putting a huge amount of their income there. Additionally, the deductibility of contributions depends on your income. There can be big penalties and headaches if you over contribute, or deduct ineligible contributions so you probably need an accountant, CPA, a broker or Financial Planner to look your situation over.  If you are concerned about past tax returns and not just 2018, you probably need a CPA.
Rick