Have a question regarding Roth IRA account

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  • #80363 Reply

      For year 2022, I completed my Roth IRA contribution in June, like I used to do before. But this year, my modified AGI came out to be higher than the limit that allows you to contribute in Roth IRA. Now my question is, how can I move the money from Roth to Traditional IRA or what should I do to avoid the tax penalty?

      Has anyone came across such situation?

      Your advice is greatly appreciated in this matter.


      #80364 Reply

        I’ve done that before- you just need to recharacterize from a Roth to a traditional before converting back to a Roth as a backdoor contribution. Vanguard walked me through the paperwork, but it wasn’t that much work. Now I always do a backdoor, just to be safe.

        #80365 Reply

          Request a “Return of Excess Contribution” from your Roth IRA. Custodian will do the math and process within a couple days.

          You can then choose to make 2022 contribution to your Trad IRA, either for deduction or back door Roth. That, of course, is another whole discussion.

          #80366 Reply

            Do you have an existing tax deferred trad IRA?

            If not, have the contribution recharacterized as a trad IRA contribution. You won’t take a tax deduction for it… – Instead – you’ll convert it to your Roth IRA.

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