I over-contributed to my Roth IRA by $6k, with earnings of ~$2k on that $6k since contribution in early 2021.

What’s the best strategy here? Is it possible to withdraw the $6k contribution and recharacterize just the earnings to a traditional IRA to avoid the 10% early withdrawal and income tax?

like
Posting as :
works at
You are currently posting as works at

Have your brokerage recharacterize the over contribution to traditional Ira. You will have to pay tax on the earnings. If you have no traditional Ira balance, just convert it back to Roth.

like

Cool. In step 2 is it a recharacterization of funds back to ROTH, or conversion? From reading I think the latter.

So you are saying you put in 6k and it’s now worth 8k?

That’s the point. It’s not meant to just stay at 6k, it just means you gained 2k on a 6k investment. That’s normal.

Accidentally did the same with my 401k (changed employers this year and the sum of my contributions is > the max).

Any thoughts?

Contact your 401k administrator

like

Related Posts

Anyone live or lived at Elan Madison Yards in Reynoldstown? Thinking about moving there, but the online reviews are mixed. Any personal comments would be appreciated! I’d also love any thoughts on the Avondale Estates area. Also getting mixed reviews!

like

Anyone have any recs on a 529? When my baby was born last year a lot of people said to go with Utah (my529) but it hasn’t done very well this year. Wondering if anyone switched or just keep it?

like

Does the 401k have to be transferred to D's plan? What do u guys tend to use?

likehelpful

Any Boston professionals here who like to 🍁, or fellow MMJ cardholders!?

like

IPOF today?

Very active after hours and premarket today. Anyone have thoughts on why (other than obviously expecting some news or announcement today, asking more specifically on what that could be)?

like

Hi all - I just left my past role after 6yrs and moving my DB pension into a LIRA acct. I’m going to have $73k CAD and about $22k (before taxes) as a refund. I have $45k in debt I’ll be addressing with the refund and pay increase. As I support my mom and due to family issues, I had to take on this debt. I invest into 2 ETFs (FID6000 and Mackenzie Growth Series A) and have about $29k. What should I do outside of attacking the debt and invest with that amount? Damn it character limit reached…

smart

For those with options to co-invest, what do you do?
1) Nothing 2) Max allowed 3) Somewhere in between

like

Should I be using my credit card for every purchase (except rent and big time purchases). Right now, I use my debit card 90% of the time and only use my credit card to increase my credit score. I have a chase freedom card and just applied for an Amex card. I feel like im missing out on points etc.

like

Hi sharks, what would be the post tax per month ??

Post Photo
like

Scenario 1: I have a property back home that I purchased from here many years ago. If I sell it and bring the proceeds here in US then what kind of taxes do I need to pay?
Sceneries 2: I have a property that was transferred to my name by my dad many years ago. If I sell it and bring the proceeds here in US then what kind of taxes do I need to pay? Note: Posting above for a friend. Thanks.

like

What are you investing in right now to lose money at a slower rate?

funnylike

Building out private investment platform for a growing company. Where can I find example docs of allocation policies, expense policies, etc. in order to create my own? Are there any good resources?

like

How much does one RSU of amazon is worth ? In INR

like

Long or short USD/EUR? Why?

like

Has anyone invested in a company that you know was initially started as a RollOver as a Business Startup (ROBS) or a ROBS holding?
I am looking at this as an incubator model to avoid interest payments and other forms of initial capitalization.
I understand the level of risk and the objections some have for ROBS.

like

New to Fishbowl 😁👋 Hello everyone!

Quick question for y'all! Who is the youngest holistic financial planner that you know and/or youngest person you know that's started their own RIA?

likehelpful

Is anyone here familiar with RSUs and stock options as part of divorce? My arbitrator was not and she asked us to hire an expert to get a valuation. She’s convinced I cannot take my portion in kind if we could not settle on the value and I don’t want to be forced to sell my half to Husband at whatever valuation expert provides today (RSUs and stock options are under Husband’s name). If they low ball I rather take the risk and take them in kind. Any advice would be helpful.

like

Wife and I have HHI of ~330k at age 27/28.

What’s a reasonable price point for our first home? We live in Denver btw.

Was thinking max purchase price of 800k based on research to get something nice/decent, 3 bed room, and in metro Denver.

Is this too much? Thoughts?

like

How long are homes sitting on the market these days? For sale

like

More Posts

Whats is the starting salary for SDE1 and SDE2 at Microsoft India with .net skill set at an professional experience of 8-9 years. Microsoft

like

What does this clause mean below:
Notice Period/Termination
(i) During the probation period, your employment with the Company may be terminated (i) by you, upon giving the Company three months' written notice or at the Company's discretion, payment of gross salary in lieu of notice or (ii) by the Company, upon giving you two months' written notice or payment of gross salary in lieu thereof.

I am still under probation and got a job offer from another company. How to reduce Notice Period.

like

Currently work at a PR agency in D.C., but actively trying to move to SoCal, preferably LA or SD. Goal is to do more digital strategy/social media/creative work in house, any one know of anything?

Anyone have any recs on a 529? When my baby was born last year a lot of people said to go with Utah (my529) but it hasn’t done very well this year. Wondering if anyone switched or just keep it?

like

Undershirt or nah?

like

How worried is everyone about Corona virus?

like

Sunday night me: I'm going to get an early start tomorrow so I can finish last week's timesheet and create a to-do list for the week.

Monday morning me: it's going to be cold when I leave the covers. Maybe I will get up in May.

likefunnysmart

What will be my in-hand salary?

Post Photo
like

Boutique or big 4?

I'm currently an ops manager at a big 4 in London and received an offer from a small boutique firm with 25-30% pay rise.

I'm also in the process with Accenture but I feel like I'm not sure if I'd jump just for the money but also change in environment.
What type of things would you be asking yourself if you were in my shoes and debating to jump ship?

like

Hey! If there are any CW’s in here shoot me your books. We’re looking for Mid - CD Level people in the BK office.

like

Hi can someone please provide a referral for a DS role . Have ~3 years of work experience. Thanks

Hi Folks,

We have the Openings for below profiles at Deloitte USI.
1. ETL Informatica & ETL IICS
2 ERP Basics +SAP ABAP
3 Front-end Foundational & Advanced
4 Manual & Automation Testing(Selenium)
5 Salesforce
6 Advanced Visualization (Tableau + Power BI)
7 Oracle Cloud ERP Technical 8 .NET(Foundational & Advanced)

Experience required : Minimum 5-7 years Let me know if anyone is interested.

Thanks
Tata Consultancy Newco Accenture India ZS Associates Deloitte

like

Ex who dumped me abruptly before I planned on proposing reached out and wants to meet up 6 months later to try to get back together. I feel mostly anger towards her. Bad idea to accept and meet up

like

Entering 2-4 years of long distance. Been together for a year. I know she is the one for me, any tips on making it as painless as possible?

like

How much time your divorce procedure took?

like

I had *just* gotten back into running (2 weeks) when I found out I’m pregnant! Great news, but would you keep running? Doctor says it’s up to me.

like

Creative 1: “Just closed on my house today.”

Creative 2: “I’ve been seriously considering buying a second pair of jeans, but I’m gonna do some more research first."

likefunny

Blesseth tf up

Post Photo
like

Hello fishes
I have Infosys 14LPA offer including 10% variable.
So guys please tell me normally how much % performance bonus will Infosys pay to there employees. Tech- Java.

like

Does anyone have a comprehensive list of every creative recruiter and CD in the city? Thanks!

Additional Posts in Personal Investment Chatter

Is it good year to purchase a 2 BR condo in Chicago or does it make sense to wait for an extra year or two? Hard to predict the RE market for next 2-5y.

like

How do you determine how much of excess savings to go into investments vs extra retirement? Already maxing my 401k but may have mega back door option.

like

How much is everyone goaling for retirement? I realize it’s different for everyone, but curious as to what this group of financial savvy people are thinking?

like

Anyone have any recs on a 529? When my baby was born last year a lot of people said to go with Utah (my529) but it hasn’t done very well this year. Wondering if anyone switched or just keep it?

like

Hi all - I just left my past role after 6yrs and moving my DB pension into a LIRA acct. I’m going to have $73k CAD and about $22k (before taxes) as a refund. I have $45k in debt I’ll be addressing with the refund and pay increase. As I support my mom and due to family issues, I had to take on this debt. I invest into 2 ETFs (FID6000 and Mackenzie Growth Series A) and have about $29k. What should I do outside of attacking the debt and invest with that amount? Damn it character limit reached…

smart

I’m an attorney trying to learn about finance and economics. I didn’t take any economics courses in college and don’t have any experience in that area. What books or other resources would you recommend for a beginner? I’m not looking for investment guides.

like

When do you think will we see the effects of the 1.9 trillion dollars? So far the market sagged.

like

Can anyone recommend good investment options in Bank of America HSA account? I feel their funds are very limited compared to what I have seen from 401k and IRA. Anyone recommends your HSA account?

Tesla is going to trigger a broader crash IMO

likefunny

How is the best way to determine how much deposit to put down on a house?

E.g. if a house costs £300,000, the minimum deposit is £30,000 and I have £200,000 in assets (£30,000 cash and £170,000 in stocks), should I sell some/all of my stocks and put a larger deposit towards the house?

Is there a calculation I can use to make the right decision?

likehelpful

What are opportunity zones? How to take advantage to offset my capital gains?

like

PSA: TIME IN THE MARKET > TIMING THE MARKET

likesmarthelpful

If I’m 24 and making just under 100k, what reading frequency and risk tolerance should I have for my portfolio

like

Marcus HYSA rate cut down to 2.0% :(

like

Question - I am selling my house and was planning on using some of the funds to pay off student loans.. however, with all the talk about student loan forgiveness, it makes me question if I would regret paying them off.

Can someone talk me off the ledge in one direction or the other? I am so torn on what makes most sense.

like

Newbie question: why mutual funds over ETFs? I've learnt how each work but curious to learn from experienced investors here why one would pick funds over ETFs

like

I feel like I am never going to be able to buy a home.

likehelpful

I currently have a 401k where I put away 10% and my company matches 8% and then also a Roth IRA where I put in 6000$ a year. I am 19 and looking for other ways to invest my salary is 55k but I work a lot of overtime so last year I pulled in almost 70k. Any advice on investments?