Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Do you have an existing Traditional IRA in addition to your ROTH IRA ?

Does it need to be an old TIRA, or can I use a new one?

When I discovered I had to withdraw our Roth contributions, I opened a two new TIRAs (for me and my wife). My plan was (is?) to just move the money from the existing two Roths to the two new TIRAs.


When converting a TIRA to a ROTH, the tax basis is pro-rated across the value of all of your TIRAs. If you don't have any existing TIRA balances then the basis is used for the conversion.

The issue is not whether it is a new or old TIRA. The question is the existing balance in TIRAs.

You can recharacterize a ROTH over contribution. It is no longer possible to recharacterize a ROTH conversion.
Print the post  

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.