Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 118626  
Subject: Re: Distribution of Non-deductible Contribution Date: 11/15/2012 2:46 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
1. How would I verify this is the case before the end of the year?

Do a projection of your tax return. You'll only need to work on page 1 of the 1040, as you just need to get to AGI. You can get draft 2012 tax forms and instructions here: http://apps.irs.gov/app/picklist/list/draftTaxForms.html

2. If that's the case, what's the best way for me to withdraw that non-deductable contribution from the traditional IRA and place it in the Roth IRA for TY 2012?

You would need to recharacterize the current year contribution from a traditional IRA to a Roth IRA. I believe you have until April 15 2013 to recharacterize 2012 contributions.

If you are going to be close to this threshold every year, it might make sense to delay making your IRA contributions until you've prepared your tax returns. You have until the initial filing deadline (April 15) to make IRA contributions for the prior year.

--Peter
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Invest Better Hub
Take advantage of our newest free service, Invest Better!
New Fool-Branded Credit Card Available!
How does your card compare to ours?
Post of the Day:
Berkshire Hathaway

Coolidge Lessons for Today
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Facebook Fool Fan Club
Be a fan of the Fool over on Facebook!
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Get the Fool Phone App
Save and share content, zero in on sectors, podcasts, and much more!
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement