Hello,
I' contributed to a Roth over 2020, but my income happened to exceed the allowable limit, so I'm receiving an overage notification within TurboTax stating I need to withdraw or be penalized year after year until corrected. The entire amount of my contribution appears to be at play, so what is the recommended method to deal with the Roth moneys?
I have a 401k and additional IRAs. Roth appealed to us, because of it being liquid as well as the tax shelter for our future. If converted to a regular IRA, we would lose the benefit of having the contribution amount as liquid just in case we ever find ourselves in a pinch again, job loss, unknowns, etc.
I'm also uncertain what the ramifications may be if we transfer the Roth moneys to our Money Market account. What will it mean with respects to out 2020 taxes and is there a recommended approach.
We're married filing jointly with only one income, should that assist in the answer. Thank you in advance.
