I contributed $6,500 to my tIRA for 2023. Due to some happy but unforeseen bonuses, our MFJ MAGI is much higher than expected at ~$122,000. Since the tIRA deduction begins at $116,000 (both covered by retirement plans at work), I believe it is wise to recharacterize this tIRA contribution to a rIRA contribution.
I currently have a tIRA balance of $19,000 and a rIRA balance of $21,000.
I have looked through old threads and believe I have found that recharacterizing in this direction is very simple and will not require Form 8606 now or moving forward. I believe I should call Vanguard, and it will be as though I always contributed to the rIRA in 2023. Am I correct? Is there anything else I am missing? Thank you for any help you can provide.
I currently have a tIRA balance of $19,000 and a rIRA balance of $21,000.
I have looked through old threads and believe I have found that recharacterizing in this direction is very simple and will not require Form 8606 now or moving forward. I believe I should call Vanguard, and it will be as though I always contributed to the rIRA in 2023. Am I correct? Is there anything else I am missing? Thank you for any help you can provide.
Statistics: Posted by sohcahtoa — Tue Jan 02, 2024 1:30 pm — Replies 0 — Views 47