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Lost IRA with 10years of backdoor Roths

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  • Lost IRA with 10years of backdoor Roths

    Found a lost account of my wife’s by doing some account linking with TDA. 27k of lost money, awesome right? Well I feel a bit ill as I have been doing 10years of backdoor roths for the both of us while this account was resting peacefully. I contacted TDA and they confirm this is a traditional IRA opened in 2008, not a Roth/mistake during scottrade merger. I have already done the backdoor for 2020 and I have already filed 2019 taxes.

    Options I am considering.
    1. Convert the thing to a Roth and roll into her Roth IRA account and never look back.
    2. Consult accountant as I use TurboTax to unwind however many years of this I need to.
    3. Put my head in the sand and reforget about this account.

    Open to other ideas and thanks in advance for advice


  • #2
    2.)

    In my experience, I've found that ignoring known problems (whether it be medical, house related, financial, etc.) only make things worse in the long run.

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    • #3
      Agree. Would clean it up now. May as well while market is down. #2.

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      • #4
        Another vote for #2... not the end of the world if you can only fix the past few years (expect that). Best of luck.

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        • #5
          Uh-oh. The statute of limitations for the IRS to assess taxes is 3 years from the due date including extensions if used. So you’ll have to amend at least the past 3 years returns. Would definitely seek professional help from a tax accountant. Hopefully the experts on this forum will weigh in.

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          • #6
            Originally posted by GasFIRE View Post
            Uh-oh. The statute of limitations for the IRS to assess taxes is 3 years from the due date including extensions if used. So you’ll have to amend at least the past 3 years returns. Would definitely seek professional help from a tax accountant. Hopefully the experts on this forum will weigh in.
            There are multiple situations where the statute of limitations is 'indefinitely' but I don't think the OP's situation applies to any of those but that's another reason to speak with someone with experience in that arena.

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