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Forgotten Roth IRA

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  • Forgotten Roth IRA

    I did a backdoor Roth for both myself and my wife, for 2019, contributing $6000 to each. We just recently submitted our tax returns for 2019 and reported this.

    However, we just got a notice in the mail, with a statement from a prior Roth IRA (through State Farm) that she has previously contributed to during an employment period several years ago, and completely forgot about it. Apparently, we hadn't been getting any of the statements all these years because they didn't have our current address. Since she forgot that she even had it, we did not report this in our 2019 tax return. The Roth IRA is through State Farm, and amounts to ~$1900. Her Roth IRA that we used for backdoor Roth is through Fidelity.

    Any advice on what we should do with this Roth IRA contribution that we forgot about, and are we going to need to go back and make some kind of adjustment or report on our 2019 tax return?

  • #2
    There shouldn't be any paperwork required. Roll it into Fido.


    • #3
      Having an existing Roth IRA doesn't present any tax consequences or reporting requirements for continuing to do a backdoor Roth. If you think about it, it's basically the situation you would find yourself in next year (assuming the old Roth didn't exist) when you go to do your backdoor Roth for 2021. Roll it into your Fidelity Roth for simplicity and keep on keepin' on.


      • #4
        roll into current rIRA.
        nothing else to do.

        also why didnt you do 2020 at the same time?