No the IRA custodian would not allow you to contribute more than the statutory limit in any given tax year.
Yes the IRA custodian reports ALL retirement contributions AND the tax year to the IRS. So you can't get around the limit by using two different custodians.
Any given tax year's contribution may be made between January 1 of that year and April 15 of the following calendar year.
The IRA custodian reports your contributions to the IRS - by year.
When I contribute to my IRA I am asked to which year the contribution belongs. If I contribute before April 15th of a given year then I have two possible years I could apply the contribution to, the current calendar year or the previous. Yes, you must inform your account holder which year the contribution is for. After April 15th your contribution must be for the current year.
If you try to contribute too much the IRS will tax the excess contributions and any earning on those investments, they will be taxed until they are removed. Look at the following table and scroll down to "Penalties for excessive contributions" http://www.contributeira.com/what-is-an-...
Good luck with your IRA and I am glad to know that you are starting it early.
How early can I contribute to a Roth IRA for 2015
I'm 22 and want to contribute 5,500 to a Roth IRA for the first time this year. I have some questions about how the IRS knows about your contribution limits.
When you file your taxes in say February 2014 most systems will tell you that you can contribute to your IRA for year 2013 until April XX, 2014.
If I contribute $5500 today, and then $5500 on Jan 1st 2015, how would the system know whether I'm contributing to 2014 or 2015? Do you specify when you contribute? What happens if I tried to contribute more than $5500 in one year? Would it not allow me on say Fidelity? What are the time periods to contribute per year? Would 2014 be Jan 1, 2014-April XX, 2015? Or for Roth purposes are the years April XX, 2014-April XX, 2015?
Thank you all.
