retirement savings contribution.

[gman]

In calculating the retirement savings contribution, you cannot have taken money out of a retirement account in the past several years. I have a few new clients each year that say no or " don't think so" . Does the IRS check back to 06 to determine eligibility for this credit? Don't want to cheat client by not giving it to them, but don't want IRS asking them for the money back two years from now....

[solomon]

You are not cheating the client by adhering to the rules.

[Burke]

In calculating the retirement savings contribution, you cannot have taken money out of a retirement account in the past several years. I have a few new clients each year that say no or " don't think so" . Does the IRS check back to 06 to determine eligibility for this credit? Don't want to cheat client by not giving it to them, but don't want IRS asking them for the money back two years from now....

I am guessing you would only have this problem with new clients. For old ones, you would have the tax returns to check. I would ask for the last 3 years to be sure for any of these clients.