I made an error and put pretax money from a teachers retirement account in a Roth IRA last Nov 2024. My CPA thinks there has to be a way to correct it, but from what I’ve learned it can’t be corrected. My question is: Is there any way to correct my foolish mistake to avoid the taxes? Also, if I do pay the taxes can I leave the money in the Roth or do I need to take it out. If I take it out can I put it in a traditional IRA?
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What form was this reported to you on? If you just rolled it into a Roth from a traditional IRA then there is no avoiding the taxes - you'll have to pay the money. You can't un-ring the bell unless the people who manage your retirement accounts are willing to put everything back where it was and pretend it didn't happen (they won't).
Your best bet is to pay the taxes and leave the money in the Roth and call it a day.
It cannot be "corrected" because the Tax Code does not allow you to reverse a Roth conversion.
A Roth IRA is a valuable asset so there is no reason other than extreme dire emergency to withdraw the money before retirement.
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