Hi there,
I'm looking to make a non deductible contribution to a traditional IRA and then convert it to a Roth IRA, since I exceed the income thresholds. However, there was an excess contribution earlier this year in a prior Roth IRA (not my fault, the IRA provider moved the money to the wrong account). It's since been corrected and the Roth was closed.
However, now that I want to do a backdoor Roth, having just recently learned about them, is it going to cause any IRS issues that I'm opening a new Roth in the same year, since I previously had an excess contribution in the old Roth? This would be a new Roth with the same IRA provider.
Thank you!
@marychris wrote:
Hi there,
I'm looking to make a non deductible contribution to a traditional IRA and then convert it to a Roth IRA, since I exceed the income thresholds. However, there was an excess contribution earlier this year in a prior Roth IRA (not my fault, the IRA provider moved the money to the wrong account). It's since been corrected and the Roth was closed.
However, now that I want to do a backdoor Roth, having just recently learned about them, is it going to cause any IRS issues that I'm opening a new Roth, since I previously had an excess contribution in the old Roth? This would be a new Roth with the same IRA provider.
Possibly.
Where was the money moved to? What type of account?
Originally, the money was transferred from my bank to the Roth instead of from the bank to my HSA, as I had wanted to make an HSA contribution. I called the provider as soon as I saw the money had hit the Roth and had the money returned back to my bank account after completing the excess contribution form.