Hello,
Earlier this year, I contributed 3k to Roth and 2.5k to Traditional IRA (total of $5,500)
In December of 2017, I converted the total earnings in the Traditional IRA (which had accumulated to more than $3,000 at the time) to Roth IRA, making my total Roth account to great than $6,000.
In this case, would I have to pay penalties on the conversion given that my Roth "contribution" is more than 5.5k?
And to avoid it paying the penalty/taxes, would I have to withdraw a certain amount from the Roth?
Any insight would be great.
Thank you
Earlier this year, I contributed 3k to Roth and 2.5k to Traditional IRA (total of $5,500)
In December of 2017, I converted the total earnings in the Traditional IRA (which had accumulated to more than $3,000 at the time) to Roth IRA, making my total Roth account to great than $6,000.
In this case, would I have to pay penalties on the conversion given that my Roth "contribution" is more than 5.5k?
And to avoid it paying the penalty/taxes, would I have to withdraw a certain amount from the Roth?
Any insight would be great.
Thank you
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