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ROTH IRA oops!
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Topic: ROTH IRA oops! (Read 1791 times)
dannyhagglund
5 O'Clock Shadow
Posts: 3
ROTH IRA oops!
«
on:
February 14, 2017, 06:13:43 PM »
A friend of mine, him and his wife opened a Roth contributed 11,000 in 2016. But, once tax time came around the found out they made to much money for the year to be eligible to contribute to a ROTH.
What should they do?
Thanks - Danny
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DavidAnnArbor
Handlebar Stache
Posts: 2266
Age: 58
Location: Ann Arbor, Michigan
Re: ROTH IRA oops!
«
Reply #1 on:
February 14, 2017, 06:32:03 PM »
Call up the trustee/bank and convert it to a taxable account contribution.
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MustacheAndaHalf
Walrus Stache
Posts: 6660
Re: ROTH IRA oops!
«
Reply #2 on:
February 14, 2017, 08:17:28 PM »
You need to recharacterize the contributions. Best approach is your friend calling the investment company which holds their Roth IRA account, and tell them you need to recharacterize your 2016 Roth IRA contributions to a Traditional IRA. Your friend will probably be on hold getting transferred to a department that specializes in that, since it's not something the front line phone people can handle by themselves.
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MDM
Senior Mustachian
Posts: 11490
Re: ROTH IRA oops!
«
Reply #3 on:
February 14, 2017, 09:21:04 PM »
Read
IRA recharacterization - Bogleheads
and
Backdoor Roth IRA - Bogleheads
.
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ROTH IRA oops!