Accidentally opened Traditional IRA instead of Roth

Forum|Forum|2 years ago
January 29, 2024
1 reply
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I completed an Indirect Rollover from a 401(k) to a Traditional IRA. I was later told by the IRS that I missed the 60-day deadline, and I received a statement of what I needed to pay.

Now that I have paid everything:

1) What do I do about the IRA I already opened? Does it need to be "corrected" or converted to a Roth IRA or some other type of account?

2) When I take money from the account in the future, how do I file it on my taxes to make sure I only pay taxes on the gains?

I'm so confused...

Thanks!

vincep7324

You will most likely need a Tax attorney.

I inadvertently converted a IRA/SEP to a Roth bu mistake (a Check box was on the form that I was not aware of) for the whole account! I am currently contacting a Tax attorney after no success with Vanguard or IRS.

They say I need a" Private letter ruling" that the IRS would review.

No Idea yet what that will Cost.

The IRS does have payment plans worst case senario