Traditional IRA Accidentally Put in Roth IRA
Every year client does a Backdoor Roth. This year, the client accidentally put his Roth account in the memo section of the check meant for the Traditional IRA, and the investment broker’s assistant deposited into a Roth account.
Client’s AGI is substantially higher than the limits allowed for a Roth contribution.
The deposit happened last week for 2021.
How do we fix?
Permalink Submitted by Alan - IRA critic on Fri, 2021-02-12 01:47
Request that the Roth contribution be recharacterized as a TIRA contribution, and once that is done, convert to Roth. The procedure is the same as client does every year except client must first recharacterize the contribution, and after that the steps are the same.
Permalink Submitted by John Going on Fri, 2021-02-12 02:09
Thank You!