Traditional IRA Tax Deduction

[nickweems]

At the start of 2022 I contributed $6000 to my Traditional IRA because my employer did not offer a retirement solution and I wanted to take advantage of the tax deduction. July rolls around and my employer started offering a 401k. I now earn too much to get a tax deduction on the traditional IRA. If I knew they were going to offer the retirement plan, I would have contributed to a ROTH IRA. I know in the grand scheme of things its not that much money, but is there any way to not get taxed twice on the $6k, or get the original anticipated tax deduction since the money was contributed before the 401k was offered?

Thanks in advance.

[Critter-3 · Accepted solution]

You have a couple of options ...

1) leave it in the traditional IRA even if it is non deductible and make a conversion at another time

2) talk to the IRA custodian and request the contribution AND the earnings be recharacterized as a ROTH for 2022 ... you must use that term exactly.

[nickweems]

Thank you so much for your reply, I didn’t realize a recharacterization might be an option. I will engage their support team tomorrow.