Excess Roth contributions
CPA approached me for help. CPA’s client has a 401k that they have been funding. Their advisor recommended they set up a Roth IRA account as well. They did, and fully funded it. CPA is doing their taxes, and they are above the limit for income in 2021 to do a Roth IRA. CPA is now wondering if they can still move the Roth money to a non-deductible IRA.
When CPA brought this up to client, client said I have been doing the Roth for 3 years already, so did it for 2019, 2020, and 2021. CPA had no idea. Now CPA is looking at penalties, distributing assets, and filing amended returns.
Any options?
Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2022-06-21 21:31