Had too high magi for traditional ira. contributed $2700 last year and $1000 for roth ira what do i do ?

[RichardG]

Was your income too high to make the Roth contribution as well?

[tim1dog61]

according to turbo tax looks like roth is ok. would i be better just taking the $2700 out of traditional ira and put back in my pocket or converting to roth ira ?

[RichardG · Accepted solution]

Basically, those are your two options.  You can pull the money out of the IRA before April 18 with no penalty.  Or you can "convert" the money to the Roth IRA.  From a tax perspective, neither approach changes your tax situation.  From a financial planning perspective, saving for retirement and having the funds accumulate tax free is always a good idea.

[tim1dog61]

What do I do about the interest earns on the $2700 invested ?