Trying to help a friend who had high income this year and over contributed to a Roth.
Can she re-characterize the Roth contributions to a traditional IRA and then due a backdoor Roth conversion? Or is it safer to just pull all those dollars out and start a backdoor Roth contribution with fresh dollars?
ETA she doesn’t have any $ in traditional IRA accounts and is well set up for a backdoor Roth besides accidentally having putting in the Roth directly.
We did this exact thing this year (moved roth money to tIRA back to roth). So yes you can do it, I am not sure what needs to be done before the deadline maybe just the recharacterization of Roth to traditional. We had quite a bit of paperwork to fill out though that our financial advisor helped with.
I’m not sure how our planner did the calculations for the correct amount to pull from the Roth. We contribute monthly so the earnings/losses for the year on money contributed was taken into consideration for what we pulled from the Roth to the traditional.
If she has a zero balance in traditional IRA that will be so easy. We had to convert Mr. Ninja’s traditional to IRA before doing the Roth and that counted as more income.
Awesome thanks!