Rolling a Roth into a Traditional IRA

[stockman61]

Since my contributions to my Roth IRA are not allowed (I am over the MAGI limits) can I roll these amounts into a traditional IRA??  What happens if pull the funds out of the Roth and put into a regular cash investment account

[dmertz]

Changing a Roth IRA contribution to be a traditional IRA contribution instead is called a recharacterization, not a rollover.  Your IRA custodian will have a specific method for requesting a recharacterization, so contact them.  You cannot simply take a distribution from the Roth IRA and deposit the money into the traditional IRA on your own.

[RaifH]

Yes, you can recharacterize your contribution. This changes the contribution from a Roth to a traditional IRA.

To do this, you will have to open a traditional IRA if you do not already have one, and as @dmertz said, notify your Roth administrator that the withdrawal is a recharacterization. You will receive a tax form for your 2022 taxes for the distribution from the Roth. If you are within the AGI limits or are not covered by a retirement plan at work, you may still take the deduction in 2021 for contributing to a traditional IRA.

If you just move it into a regular investment account, that would be treated as if you never made the contribution. You would also have to withdraw any earnings associated with the contribution, which your administrator should calculate for you. The earnings would be taxed as income in 2022.