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Accidentla deposit in Traditional IRA instead of ROTH
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chira...@gmail.com
Apr 10, 2014, 3:21:27 PM4/10/14
to
I accidentally deposited $2500 in my Traditional IRA account last week instead of my ROTH IRA. Since I have not still filed my taxes, I havent gained any tax benefit yet.
Can I transfer the amount from my traditional IRA to my ROTH IRA account, and file my taxes as a ROTH contribution?
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Can I transfer the amount from my traditional IRA to my ROTH IRA account, and file my taxes as a ROTH contribution?
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
John Levine
Apr 10, 2014, 3:53:26 PM4/10/14
to
In article <7f53b48f-b13e-4d24...@googlegroups.com>,
trustee that held the accounts who agreed to back out the mistaken
contribution and credit it to the other account.
Better call them ASAP to they can do it by the 15th, though.
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Regards,
John Levine, jo...@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. http://jl.ly
<chira...@gmail.com> wrote:
>I accidentally deposited $2500 in my Traditional IRA account last week instead of my ROTH IRA. Since I have not still filed
>my taxes, I havent gained any tax benefit yet.
>
>Can I transfer the amount from my traditional IRA to my ROTH IRA account, and file my taxes as a ROTH contribution?
When I made a similar mistake a couple of years ago, I contacted the
>I accidentally deposited $2500 in my Traditional IRA account last week instead of my ROTH IRA. Since I have not still filed
>my taxes, I havent gained any tax benefit yet.
>
>Can I transfer the amount from my traditional IRA to my ROTH IRA account, and file my taxes as a ROTH contribution?
trustee that held the accounts who agreed to back out the mistaken
contribution and credit it to the other account.
Better call them ASAP to they can do it by the 15th, though.
--
Regards,
John Levine, jo...@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. http://jl.ly
Message has been deleted
Barry Margolin
Apr 11, 2014, 12:50:46 PM4/11/14
to
In article <li88h9$9ma$1...@snarked.org>,
"D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
> [Why people wait until tax time instead of making a contribution on January
> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
> potential investment, is beyond me.]
Sometimes you just forget. Then when you're in the tax prep software, it
reminds you that you can still make a contribution for the previous year.
--
Barry Margolin
Arlington, MA
"D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
> [Why people wait until tax time instead of making a contribution on January
> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
> potential investment, is beyond me.]
Sometimes you just forget. Then when you're in the tax prep software, it
reminds you that you can still make a contribution for the previous year.
--
Barry Margolin
Arlington, MA
Mark Bole
Apr 11, 2014, 7:04:48 PM4/11/14
to
On 2014-04-11 09:50, Barry Margolin wrote:
> In article <li88h9$9ma$1...@snarked.org>,
> "D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
>
>> [Why people wait until tax time instead of making a contribution on January
>> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
>> potential investment, is beyond me.]
>
> Sometimes you just forget. Then when you're in the tax prep software, it
> reminds you that you can still make a contribution for the previous year.
>
The process of "fixing/reversing" it is not always simple or painless.
> In article <li88h9$9ma$1...@snarked.org>,
> "D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
>
>> [Why people wait until tax time instead of making a contribution on January
>> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
>> potential investment, is beyond me.]
>
> Sometimes you just forget. Then when you're in the tax prep software, it
> reminds you that you can still make a contribution for the previous year.
>
One could just as easily be avoiding 15.5 months of potential loss by
waiting.
And finally, as I pointed out the last time D. Stussy made the same
comment, it's only a one-time missed opportunity, for the first year
contribution. After that, if you continue to make annual contributions,
you are not losing ("wasting") anything.
--
Mark Bole, EA
Enrolled Agents - America's Tax Experts
http://markboletax.com
Bob F
Apr 12, 2014, 1:40:17 PM4/12/14
to
D. Stussy wrote:
> "John Levine" wrote in message news:li6sr7$lb9$1...@miucha.iecc.com...
> Agreed: Must be fixed by the 15th if this is for the 2013 year.
> "John Levine" wrote in message news:li6sr7$lb9$1...@miucha.iecc.com...
> In article <7f53b48f-b13e-4d24...@googlegroups.com>,
> <chira...@gmail.com> wrote:
>> I accidentally deposited $2500 in my Traditional IRA account last
>> week instead of my ROTH IRA. Since I have not still filed
>> my taxes, I havent gained any tax benefit yet.
>>
>> Can I transfer the amount from my traditional IRA to my ROTH IRA
>> account, and file my taxes as a ROTH contribution?
>
> When I made a similar mistake a couple of years ago, I contacted the
> trustee that held the accounts who agreed to back out the mistaken
> contribution and credit it to the other account.
>
> Better call them ASAP to they can do it by the 15th, though.
> ============
> <chira...@gmail.com> wrote:
>> I accidentally deposited $2500 in my Traditional IRA account last
>> week instead of my ROTH IRA. Since I have not still filed
>> my taxes, I havent gained any tax benefit yet.
>>
>> Can I transfer the amount from my traditional IRA to my ROTH IRA
>> account, and file my taxes as a ROTH contribution?
>
> When I made a similar mistake a couple of years ago, I contacted the
> trustee that held the accounts who agreed to back out the mistaken
> contribution and credit it to the other account.
>
> Better call them ASAP to they can do it by the 15th, though.
> Agreed: Must be fixed by the 15th if this is for the 2013 year.
>
> [Why people wait until tax time instead of making a contribution on
> January 1 (and fixing/reversing it later, if needed), thus wasting
> 15.5 months of potential investment, is beyond me.]
Maybe they don't know what the next years income will be on Jan 1.
> [Why people wait until tax time instead of making a contribution on
> January 1 (and fixing/reversing it later, if needed), thus wasting
> 15.5 months of potential investment, is beyond me.]
JoeTaxpayer
Apr 13, 2014, 4:41:36 PM4/13/14
to
On 4/11/14 12:50 PM, Barry Margolin wrote:
> In article <li88h9$9ma$1...@snarked.org>,
> "D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
>
>> [Why people wait until tax time instead of making a contribution on January
>> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
>> potential investment, is beyond me.]
>
> Sometimes you just forget. Then when you're in the tax prep software, it
> reminds you that you can still make a contribution for the previous year.
Or - not knowing if the deposit will be deductible, one decides to wait
> In article <li88h9$9ma$1...@snarked.org>,
> "D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
>
>> [Why people wait until tax time instead of making a contribution on January
>> 1 (and fixing/reversing it later, if needed), thus wasting 15.5 months of
>> potential investment, is beyond me.]
>
> Sometimes you just forget. Then when you're in the tax prep software, it
> reminds you that you can still make a contribution for the previous year.
until return time, not wanting the non-deductible deposit to the IRA.
Message has been deleted
John Levine
Apr 15, 2014, 11:58:06 AM4/15/14
to
>> [Why people wait until tax time instead of making a contribution on
>> January 1 (and fixing/reversing it later, if needed), thus wasting
>> 15.5 months of potential investment, is beyond me.]
>
>Maybe they don't know what the next years income will be on Jan 1.
>===========
>> January 1 (and fixing/reversing it later, if needed), thus wasting
>> 15.5 months of potential investment, is beyond me.]
>
>Maybe they don't know what the next years income will be on Jan 1.
>That's why one fixes it later. Recharacterizing a contribution between a
>traditional and Roth accounts shouldn't be a problem, especially when both
>account types are at the same custodian.
Some of us po' folks fund our IRAs from the money we make during the
year, so we don't have the full contribution 15 months before it's
due. And sometimes we po' folks find out late in the year that we're
rich folks, so we can't make any Roth contribution at all.
R's,
John
--
Regards,
John Levine, jo...@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. http://jl.ly
Regards,
John Levine, jo...@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. http://jl.ly
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