Got Married this year, so neither of us qualifies (income constraint) to directly deposit into a roth IRA
one of us (sigh...) deposited directly into a roth instead of executing a back door roth..... I know we can re-characterize that deposit from a roth into a traditional IRA, and that this is normal corrective action when one overdeposits, etc, etc
... however it seems to me that we can no longer complete a backdoor roth as the re-characterization form states that you cant convert (perform a backdoor roth) in the same year as a re-characterization..... So my question is this: Now that the mistake is made what is our best course of action?
-do we invest the money in the traditional IRA? then convert to a roth next year and pay taxes on the gain?
-do we not invest the money in the traditional IRA?
-is there some backdoor conversion im not aware of that can still be done this tax year?
-anything else im not thinking of?