I invested $5500 in my traditional IRA for 2018, and I just learned my income makes me ineligible for a tax deduction. Where do I go from here?
I have a traditional IRA through Vanguard with ~$15K, and my wife has a Roth IRA through Vanguard with ~$15K. We have been depositing the $5,500 max every year. We also have 401ks through our employers that we max out every year.
We’re both working now, and H&R block just told me that my MAGI makes us ineligible to deduct deposits into my traditional IRA. So my questions are:
- Should I leave the money in my traditional and open a new ROTH?
- Should I convert this account into a ROTH?
- Anything else I should be on the lookout for?
Bonus: H&R Block asked a bunch of questions about my traditional IRA that I don’t at all understand–can anyone help me figure out how to answer?
- Did i recharacterize the amounts originally contributed to my traditional IRA for 2018 so it would be treated as Roth instead?
I expect I’ll be able to answer this once y’all help me figure out the answer to my original post
- Enter your total basis in traditional IRA.
I think the answer to this is $0.