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Thanks for the suggestion - just to clarify - are you saying the account is 'illegal' by virtue of having transferred these funds into it? It was an already existing Roth, not a newly created account. OR is your view the same regardless?

Also - I've already paid the taxes on it because it is a conversion (or, I should say, I'm planning on paying the taxes on it when I file this year). There's no penalty as it was taken out under the first time homebuyer rule.

If I were to reverse the transaction I think I would just have this chunk of money that's no longer growing tax-free. And I woudln't need to pay the tax bill. Not a tragedy, but I'd much rather have the money growing tax free.
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