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Convert tIRA to Roth IRA same year
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Topic: Convert tIRA to Roth IRA same year (Read 1413 times)
talc2
5 O'Clock Shadow
Posts: 2
Convert tIRA to Roth IRA same year
«
on:
November 19, 2019, 07:37:19 PM »
-deleted-
Answer: Recharacterize
«
Last Edit: December 12, 2019, 09:50:19 PM by talc2
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terran
Magnum Stache
Posts: 3807
Re: Convert tIRA to Roth IRA same year? Unanticipated income increase.
«
Reply #1 on:
November 19, 2019, 09:04:43 PM »
You want to recharacterize, not convert. Here's a recent thread with some details that should help:
https://forum.mrmoneymustache.com/taxes/recharacterization-roth-ira-to-traditional-ira-same-year-2019/
You can recharactize any time until your tax filing deadline including extensions, so waiting until you have a full income picture makes sense.
Recharacterizing is no big deal, so I wouldn't worry about waiting to contribute. The exception to this would be if you have existing traditional IRA balances and are near the Roth contribution limit. In this case I would probably wait so as not to get stuck with a mix of after tax and previously deferred traditional IRA balances that you'd have to convert pro-rata while paying tax in a high bracket.
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Convert tIRA to Roth IRA same year