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.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. M