For 2013, I have exceed Modified AGI limit for Roth Ira contribution.
Do I Morph the Roth into a nondeductible traditional IRA?
I have also contributed to Roth 401k. Whether I should withdraw 401 K too?
What should be done?
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For 2013, I have exceed Modified AGI limit for Roth Ira contribution.
Do I Morph the Roth into a nondeductible traditional IRA?
I have also contributed to Roth 401k. Whether I should withdraw 401 K too?
What should be done?
1. I suggest you recharacterize the Roth IRA contribution as a traditional IRA. You have until April 15th or the date you file your tax return to do this. Contact the plan administrator and they'll provide the forms you need for the recharacterization. Then once the traditional IRA is established if you want you may convert it into a Roth IRA. It's strange, but while the rules don't let you contribute directly to a Roth IRA if you exceed the income limit, they do allow you to contribute to a tradiational IRA and then convert the traditional to a Roth IRA.
2. As for Roth 401(k) - it does not have income limits for contributions, so no need to recharacterize it.
Ebaines once again has covered it all brilliantly!
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