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socrateaser, Lawyer
Category: Legal
Satisfied Customers: 37830
Experience:  Retired (mostly)
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what is the penaltyfor depositing unearned income into an IRA

Customer Question

what is the penaltyfor depositing unearned income into an IRA account?
Submitted: 6 years ago.
Category: Legal
Expert:  socrateaser replied 6 years ago.

As long as you report the contributions as nondeductable on Form 8606, there's no penalty.


Hope this helps.


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Customer: replied 6 years ago.
I just completed IRS Form 8606 and it looks like I have taxable income to report due to this error and a 10% penalty because I am under 59 1/2.
Expert:  socrateaser replied 6 years ago.

That's only if you take the money out again. You didn't say anything about that in your question.

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