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Here's what I think are the facts:

You have no traditional IRA of any type, including SEP, SIMPLE, and rollovers from prior employer plans. Your 2013 joint income bars the Roth contribution you already made.

I think your best course is:

1. Recharacterize the 2013 contribution to be a traditional IRA contribution.

2. Report this nondeductible contribution on Form 8606 on your 2012 return.

Your deadline for this action is Oct 15, 2014. There is zero tax or penalty.

Once you've established the traditional IRA via the recharacterization convert the traditional IRA to Roth. Only fhe earnings will be taxable. This is a 2014 transaction.

Rule Your Retirement home Fool
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