Convert “Never Been a Traditional” Roth IRA to Traditional
I would like to convert an original Roth IRA into a traditional IRA. It never was a traditional. Can this be done.
I would like to convert an original Roth IRA into a traditional IRA. It never was a traditional. Can this be done.
Permalink Submitted by Alan - IRA critic on Fri, 2014-05-02 19:47
No, but you can recharacterize a contribution before the deadline. Explain what happened here. What year is the Roth contribution for? Are you trying to change it to get a tax deduction?
Permalink Submitted by Ed Farmer on Tue, 2014-05-06 12:20
Our client made $6,500.00 of ROTH IRA contributions in 2013 which it turns out his inocme is too high for him to use a ROTH IRA. I was wondering if he could back out of the ROTH & move the dollars to a Traditional IRA
Permalink Submitted by Alan - IRA critic on Tue, 2014-05-06 16:06
Yes, a 2013 Roth contribution can still be recharacterized as a TIRA contribution IF client has either filed or extended his 2013 tax return. The deadline to recharacterize would then be 10/15/2014. If either client OR spouse is covered by a retirement plan at work for 2013, the recharacterized contribution would not be deductible, and Form 8606 could be filed by itself for 2013 showing a non deductible contribution of 6,500. This would not affect the 2013 return tax due, and therefore the 2013 8606 could be sent to the IRS center without amending the return.