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The Online Advisor - November 1999
IRS gives more time to correct Roth mistakes
The IRS has extended the deadline for fixing incorrect Roth IRA contributions and conversions done by taxpayers in 1998. Previously, the IRS said taxpayers had until October 15, 1999, to fix Roth mistakes made in 1998. Realizing that the Roth IRA was new and the rules were complicated, the IRS will now allow taxpayers to fix 1998 errors if they do so by December 31, 1999.
Taxpayers were ineligible to make full $2,000 contributions to Roth IRAs once 1998 income exceeded $95,000 for singles or $150,000 for couples. Also, taxpayers could not convert a traditional IRA to a Roth IRA if 1998 income exceeded $100,000, whether single or filing jointly. Married couples who filed separately were ineligible for Roth conversions regardless of their income.