I have a Roth IRA and after having a CPA do my income taxes, I was told I could not contribute to my IRA last year because as a self employed farmer, I had a loss. (I didn't realize I had a loss for last year until my taxes were done a few days ago.) I contribute to my IRA monthly and now have to withdraw the money I put in last year, or pay a penalty. I have a part time job away from the farm as well. I am single and 51 years old. What would be the best way to deal with this? Either way, I believe I am going to have to pay a penalty, simply by leaving the money there or taking it out. Is there a way I can get around the penalty, or should I just pay it and move on? Does having the part time job help, or does it not since it is not connected to my self employed job as a farmer? I don't pay myself a wage for working on the farm.
