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I just want to flirt 😏
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I had this a couple years ago.
You have to take a corrective distribution and pay tax on the gain. You have to do this prior to 4/15 I believe, but check with a tax person to confirm. If you are somewhere along the phaseout, you’ll have to use your MAGI to compute your max for 2018.
You can’t “recharacterize” from Roth to traditional in the same account - an account has to either be traditional or Roth, not commingled.
You can do whatever you want with the distribution, including putting it into a nondeductible traditional IRA. If you make such a contribution prior to 4/15, you can attribute it to the prior year (assuming you have room under the max). The deductibility of a traditional contribution is another income test, which you will also exceed, so this contribution will be nondeductible.
The complete kick in the pants is that once you’ve made the correction, you can take the same TIRA and make a “backdoor” Roth transfer, ending up right where you started.
TY this is helpful. Was thinking the same about the backdoor IRA haha
limits (~130k) for contributing to a Roth. I now need to recharacterize my contribution to a traditional IRA or face a fine, correct? Am I correct that the Traditional IRA contribution won’t be deductible since I also contribute to a 401k? Kicking myself now.. should’ve just put more into my 401k but had no idea this bonus was going to push me over the limit for contributing to Roth...