I have a rollover IRA from a 401k at my previous employment. This year I ended up contributing $500 after-tax money to it. I've since learned it's not good to contribute and mix into your rollover IRAs so I was wondering if there's anything I can do to reverse this.
I read up about re characterization but it's not clear if I can do it and how to go about it. I kept reading opposing things so I'm not sure. According to The Tax Cuts and Jobs Act, it says I can't. But then I see things like the pro-rata rule and converting. But this is usually done with high earners trying to get around not being able to contribute directly.
posted
last updated
October 05, 2024
9:28 PM