Personal Investments • Made a huge mistake within my IRA. Is it too late?

You can do a Roth conversion since you have basis in the IRA funds from the original Roth 401k. Of course, any earnings in the traditional IRA would be taxable. We had a client do this under the same circumstances that held up under IRS inquiry.

Interesting. Apparently the IRS did not understand that this rollover was disallowed and must be treated as an excess IRA contribution that is not rollover eligible, and a conversion is a rollover. Sometimes IRS inquiries overlook basic code requirements.

I wouldn't count on this working again with scrutiny from a different IRS examiner.

Statistics: Posted by Alan S. — Tue Dec 17, 2024 12:26 pm — Replies 2 — Views 632

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