Hi There,
My wife was in the process of doing a backdoor Roth IRA conversion, she was supposed to transfer cash to her Traditional IRA, then move the funds to the Roth IRA account and then invest the money from the Roth IRA. Somehow she got confused and skipped step 2, she transferred cash to the Traditional IRA and instead of moving the cash to the Roth IRA, she invested the cash in her Traditional IRA.
- Does this make her non-eligible for Backdoor Roth conversion? I read a long time ago that one of the requisites for the backdoor conversion was that you couldn't have any other IRA active
- How can she undo this mistake? Can she just sell the shares she bought and transfer the cash to the Roth IRA like nothing happens? what happens if there was capital gains?
Thank you in advance.
