Author Topic: Roth vs Traditional IRA  (Read 626 times)

FiguringItOut

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Roth vs Traditional IRA
« on: January 24, 2022, 01:21:46 PM »
in 2021 I contributed $4,000 to Roth IRA and $2,000 to tIRA.  Turbotax is telling me that only $1,840 of my contribution to traditional IRA is deductible and $160 is non deductible.  What is better for me to do?  Leave $160 in traditional or recharacterize to Roth? 

EvenSteven

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Re: Roth vs Traditional IRA
« Reply #1 on: January 24, 2022, 02:01:47 PM »
Recharacterize. If it is in a Roth IRA you will pay no taxes on the gains. If you leave it in the traditional IRA you will pay taxes at your marginal rate on the gains.

 

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