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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Qwertykid18 on September 12, 2019, 03:38:56 PM

Title: Moving from Roth to traditional IRA
Post by: Qwertykid18 on September 12, 2019, 03:38:56 PM

Is it possible to move the money from my Roth IRA at vanguard into a traditional IRA at vanguard after I’ve already maxed it out for this year?

TIA!

Title: Re: Moving from Roth to traditional IRA
Post by: dandarc on September 12, 2019, 04:06:18 PM

Yes - it is called a recharacterization. Makes it as if the contribution was traditional all along. You have until your tax filing deadline (plus extension if you file for one) to do this for each year's IRA contribution.

Title: Re: Moving from Roth to traditional IRA
Post by: Qwertykid18 on September 12, 2019, 05:17:41 PM

Thank you. Doing this would lower my taxable income right?

Title: Re: Moving from Roth to traditional IRA
Post by: dandarc on September 12, 2019, 05:35:58 PM

Quote from: Qwertykid18 on September 12, 2019, 05:17:41 PM

Thank you. Doing this would lower my taxable income right?

So long as your traditional IRA contribution is deductible, yes.

Title: Re: Moving from Roth to traditional IRA
Post by: terran on September 12, 2019, 08:19:44 PM

Quote from: dandarc on September 12, 2019, 05:35:58 PM

Quote from: Qwertykid18 on September 12, 2019, 05:17:41 PM

Thank you. Doing this would lower my taxable income right?

So long as your traditional IRA contribution is deductible, yes.

... See https://www.irs.gov/retirement-plans/ira-deduction-limits