Reverse Roth Conversion
I’m 74 and still working part time – mainly to get out of the house. I estimated my 2020 income to be approximately $75,000 since RMDs were not required last year. Obviously it was a major mistake given the stimulus money being distributed. Is there a way to reverse the conversion? (It was completed in December 2020). With RMDs income is $110,000+. Thank you.
Terry Says
Did you do a CONVERSION — or just take a “withdrawal”?
A conversion to a Roth cannot be reversed — and it will increase your income for the year.
A withdrawal within 60 days could be considered a “rollover” if you return all the money to the account. But ask your IRA custodian to make sure. I’m not exactly sure but I think this is allowed even over a year-end. And if they withheld taxes on your withdrawal, you wont’ get that money back — but it can be counted against anything you might otherwise owe the government in taxes — or as a credit for next year’s taxes.
