3 ms·
> Fidelity lets me, so I do This is inadvisable. There is a legal way to do this. https://en.wikipedia.org/wiki/Roth_IRA#Traditional_IRA_conversion_as_a_work
by greyface- 5y ago
> Fidelity lets me, so I do
This is inadvisable. There is a legal way to do this. https://en.wikipedia.org/wiki/Roth_IRA#Traditional_IRA_conversion_as_a_workaround_to_Roth_IRA_income_limits https://en.wikipedia.org/wiki/Roth_IRA#Traditional_IRA_conve...
If you're making direct Roth contributions over the limit, those are disallowed and may come back to bite you. It may be possible to recharacterize your already-done disallowed contributions as Traditional IRA conversions; I would talk with Fidelity or a tax advisor.
- lotsofpulp 5y agoI am curious as to what compels someone to admit in writing to committing fraud.
- papito 5y agoI push a button that says "Contribute", and it's fraud. Donald Trump buys land in New Jersey for $2 million to develop a golf course, the golf course is deep sixed by the town, he writes "$100 million loss because that is what it is worth in my opinion", and it's fine. God forbid I make a few thousand dollars tax-free, let alone by accident.
- lotsofpulp 5y agoBut you just wrote you did it on purpose, not by accident.
- papito 5y agoI realized after the fact that I have been contributing above my income level - I was sort of aware I might have been out of the range but I never paid attention. The screens are nagging you about being at $0 contributions.
- lotsofpulp 5y agoSo now that you have acknowledged it, you have to take steps to fix its. Otherwise, it is fraud.
- astrange 5y agoTurbotax will yell at you when you report it and make you unwind (recharacterize) the transaction. There is a proper way to do it though. Contribute to a traditional IRA and immediately convert it.
- deleted 5y ago[deleted]
- papito 5y agoThe last time I did it I got totally torched on taxes. You can only convert from scratch - not after the fact.