Excess ROTH contributions to conversion
Made too much money this year for ROTH contribution. Want to recharacterize those contributions to traditional IRA then convert to ROTH IRA. Can I do this?
Made too much money this year for ROTH contribution. Want to recharacterize those contributions to traditional IRA then convert to ROTH IRA. Can I do this?
Permalink Submitted by Alan - IRA critic on Wed, 2022-02-23 21:12
Yes, but the taxes on the conversion depends on how much value you have in all your TIRA accounts. If you currently have no TIRA, SEP, or SIMPLE IRAs, just this Roth contribution, you could recharacterize the contribution as a non deductible TIRA contribution, and then convert. Taxes would only be due on any gains on your original contribution.