topic Re: Excess contribution and Backdoor Roth conversion in same year in Retirement tax questions

Excess contribution and Backdoor Roth conversion in same year

marychris — Mon, 08 Mar 2021 04:35:20 GMT

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!

Re: Excess contribution and Backdoor Roth conversion in same year

macuser_22 — Mon, 08 Mar 2021 04:18:08 GMT

@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?

Re: Excess contribution and Backdoor Roth conversion in same year

marychris — Mon, 08 Mar 2021 04:23:57 GMT

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.

Re: Excess contribution and Backdoor Roth conversion in same year

macuser_22 — Mon, 08 Mar 2021 04:47:00 GMT

Then it should not cause any problem.

Re: Excess contribution and Backdoor Roth conversion in same year

marychris — Mon, 08 Mar 2021 04:49:49 GMT

Whew! Thank you 🙂