UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: dreamseason Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75830  
Subject: Straightening out my IRA setup mess Date: 2/24/2001 1:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I just paid off all my college credit card debts and took another Foolish step forward by setting up an IRA account with Datek. Unfortunately, I meant for it to be a Roth IRA but it was set up as a Traditional IRA account. I'm not sure who screwed up, but in order to fix the problem their customer support said that I had to:

1. Sign up for a new account specified as a Roth IRA Conversion account.
2. Fill out a request for distribution/conversion form in order to move my assets over.

I did this already, but I just realized that there might be some tax consequences. I already filed my 2000 tax return based on the assumption that I would put the max $2000 into a Roth IRA. Since it went into a traditional IRA account and now it's being "converted" to a Roth, will I have to pay taxes on it despite not reporting a Traditional IRA contribution as a deduction? I'm hoping that I can avoid anymore paperwork=headaches.

Datek customer support said that there wasn't anything else needed, but they added a caveat to consult a tax professional so I'm not very confident.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

The Saddest Place on iPhone Day
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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