Roth limit (IRA, fund, investment, income)

[FW transplant]

Why is there a $6k annual limit to a Roth IRA for those over 50? What happens if you put in $10K in a Roth in one year?

[mathjak107]

i think there is a 6% penalty on the overage per year.

[caco54]

In Jan/Feb/Mar you could fund the current and prior years Roth. Not sure if the $10,000 was a trick question.

[FW transplant]

No, it wasn't a trick question - just a random number.

At this point, most of my retirement income will be from pre-taxed income, so I will pay taxes on it once I begin withdrawing it. I was hoping to balance my retirement income with income I've already paid taxes on. Plus, my employer doesn't offer very good investment choices for my pre-tax dollars. I've met the company match, and was looking at other options, and thought more money in my Roth would be a good idea. Guess not.

[Oildog]

Always thought that was a crappy rule. As well as the income limits to contribute