IRA Rules

Question: How does the IRS know if my Roth IRA contribution did not break AGI limits?

There is nothing on my 1040 that asks about Roth IRA contributions.
There is nothing on my account at Fidelity (which has my Roth IRA) that specifies my Adjusted Gross Income for this year.

If this is the case, how does the IRS know whether my contribution amount made for 2009 did not break any rules related to contribution limits based on income.< I know Roth IRA contributions phase out somewhere around $150,000 AGI).

I already filed my 1040 and got my refund but I am still contributing to my Roth IRA for 2009.

Any thoughts will be appreciated.
Thanks!

Answer: You probably shouldn’t have to report Roth contributions on your tax forms (they are non deductible), but it’s still something you should keep track of yourself. The problem is if you get audited, you’ll have to explain your actions to the IRS if something is wrong are there will most likely be some penalties. Also, you will probably get a tax form (5498) from the company you’re working with in May or June showing contributions for the year. So it’s probably not going on your taxes (1040) for filing, but your contributions are still being reported to the IRS. You should probably consult with a tax advisor to double check everything.

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