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Roth IRA assistance please
Old 12-29-2015, 05:52 PM   #1
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Roth IRA assistance please

Over the course of 2015 I started dollar cost averaging into a Roth. About August I got skeert that I was working to much overtime to qualify and started contributing to a traditional IRA. As it stands now I have
$4000 in the Roth and $2500 in the traditional.
I did a bunch of internet searching and having a little trouble with reading the IRS codes. From what I gather, I made over the contribution limit.
If I calculate wages subject FIT (total wages minus 457b and pension contributions) this puts me under the maximum limit and I would be good.
Is this a correct assumption?
If so what is my next move? Can I move the traditional funds into the Roth for 2015?
thanks
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Old 12-29-2015, 06:20 PM   #2
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I don't think one can "move" the funds into the Roth, but one can "convert" the funds into the Roth. Contact your financial institution and ask them how to "convert your traditional IRA to your Roth IRA". If you have other money in the traditional IRA or other non-Roth IRAs, then that other money has to be taken into consideration, too.

In some sense, you are doing a Backdoor Roth IRA. See: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
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Old 12-29-2015, 07:05 PM   #3
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Yes converting the $2500 to a backdoor Roth was what I was looking at. Since I already have previous Roths and traditional IRAs for other years, it looks like that my not be feasible.
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Old 12-29-2015, 07:20 PM   #4
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Check this out https://www.bogleheads.org/forum/viewtopic.php?t=130421 and read the IRS regulations. I don't know if (a) it applies to you and (b) if it does can you make an additional $2500 contribution to your Roth IRA.
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