Author Topic: Tax Question  (Read 1029 times)

PRMUSTACHE

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Tax Question
« on: March 22, 2016, 03:02:21 PM »
Hey Guys!

First time posting here! I have a few questions regarding my IRA's. I made an excess contribution for 2015. As long as I take out the excess plus earnings before April 15th, will I be okay? In addition, I forgot to add a re-characterization from a ROTH IRA to a traditional IRA in my 2015 tax returns. What are the steps to fix this.

P.S. I had an earnings loss during this re-characterization if that matters.

Thanks!

Axecleaver

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Re: Tax Question
« Reply #1 on: March 23, 2016, 11:34:31 AM »
Yes, I had a similar situation in 2015. You simply write a letter of instruction to return the excess.

Not sure what the doc rules are for re-characterizing, hopefully you get a response to that part of your question.

jda1984

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Re: Tax Question
« Reply #2 on: March 23, 2016, 03:13:11 PM »
Re: the recharacterization, it probably depends on your investment firm.  I had to re-characterize some early 2015 deposits to count toward tax year 2014 with Vanguard and it was relatively painless.  It did require a phone call though.  I imagine recharacterizing from Roth to traditional will be easier than the other way, but I may be wrong.  I'd give your brokerage/investment firm a call.