Undo Roth and Redeposit
I contribute $6,000 to my Roth and the market decreases so now my Roth is worth $4,000. Can I withdraw the $4,000 (undo the Roth contribution) and then recontribute $6,000 to the Roth before tax filing deadline?
I contribute $6,000 to my Roth and the market decreases so now my Roth is worth $4,000. Can I withdraw the $4,000 (undo the Roth contribution) and then recontribute $6,000 to the Roth before tax filing deadline?
Permalink Submitted by Alan - IRA critic on Wed, 2020-04-22 19:46
Yes, you can do that. Request a return of your 2019 or 2020 regular Roth contribution. The custodian will calculate the loss and distribute the loss adjusted amount. You can then make a new 2019 contribution up to 7/15/2020.