Deduction Taken on Roth Contribution
What if you contributed to a Roth but CPA takes a tax deduction by mistake? Already filed so what’s the best solution and would it be affected by 10-15 deadline?
What if you contributed to a Roth but CPA takes a tax deduction by mistake? Already filed so what’s the best solution and would it be affected by 10-15 deadline?
Permalink Submitted by Anonymous (not verified) on Tue, 2009-10-13 18:32
Amend the return, for which you have 3 years, I think? The 10/15 deadline will only allow you to recharacterize to a Trad or remove as an excess, which is not the desired result.
pmk
Permalink Submitted by Alan Spross on Tue, 2009-10-13 20:36
You have to produce conformity between the IRA contribution and the tax return. The contribution can be recharacterized to a TIRA contribution if the custodian can complete this at this late date with the deadline in 2 days. But before considering that, you should verify that the contribution will be deductible or not.
And if you stick with the Roth contribution, you need to be sure that your modified AGI is not too high for a Roth. If you retain the Roth, then the tax return needs to be amended to eliminate the deduction.