@gday111 wrote:
My Roth IRA is worth $179K as of today. I am going to look at my yearly Contribution notes tonight and create a chart as Opus17 suggested. His calculations are probably pretty correct because as I stated I made the Maximum Yearly Contribution to my Roth for at least the last 18 years and I exceeded the Income limitation for most of them.
Reopening this conversation really makes my head hurt but I thank you all for you input. I need to address this catastrophe. Not a Happy Retirement payoff for me.
Thanks Fanfare
Again, see a professional. It is possible that if you withdraw the entire amount, pay income tax and a 10% penalty on the $77,000 of earnings, and lay low for 6 years, you can avoid any consequences.
Otherwise, the late payment penalty (0.5% per month back dated to when you should have paid the tax) plus interest (3-8% APR backdated to when you should have paid the tax), probably double the actual amount of tax you owe (which I estimated at $57K). You could make an offer in compromise, and keep some of the account, or roll the dice, lay low, and wait for the 6 years to pass.
As far as insurance, that would also be a question for a tax professional. You don't even know if your tax preparer had insurance when he prepared your returns, or who the carrier is. Did he have a partner or successor who took over his clients? Another tax pro in your state would know if it is possible to access that information.
