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Started By
Message
Weird question on Roth IRA contribution.
Posted on 1/9/23 at 10:06 am
Posted on 1/9/23 at 10:06 am
I've gone over in the past and had to recharacterize so that may be the same thing I'm looking at again, but scenario is different.
I have traditional 401k account through work. Contribution goes through on paycheck as a Roth contribution.
Is the easy fix just filing the recharacterization form and paying taxes on that one small amount? Account it went into is not a "Roth" account so no transfer from there necessary.
Basically payroll screwed up
I have traditional 401k account through work. Contribution goes through on paycheck as a Roth contribution.
Is the easy fix just filing the recharacterization form and paying taxes on that one small amount? Account it went into is not a "Roth" account so no transfer from there necessary.
Basically payroll screwed up
This post was edited on 1/9/23 at 10:06 am
1
Posted on 1/9/23 at 12:23 pm to HailToTheChiz
Did the go into your regular 401k account? If so, whatever says "Roth" on your paycheck might be a clerical error, I don't think traditional and Roth money can be comingled in the same account. Look at the paystub, does it look like the contribution was deducted from your taxable income?
Nonetheless, this doesn't affect your Roth IRA contributions/limits in any way if I'm understanding the post correctly, as IRAs and 401ks are 2 separate vehicles with separate rules, limits, etc.
Nonetheless, this doesn't affect your Roth IRA contributions/limits in any way if I'm understanding the post correctly, as IRAs and 401ks are 2 separate vehicles with separate rules, limits, etc.
Posted on 1/9/23 at 12:31 pm to Sir Saint
Yeah it went to my regular 401k account. My 401k even has it tagged as a usual contribution like the others.
Only discrepancy would be the listing on the W2 and that particular amount not being taxed that check?
Only discrepancy would be the listing on the W2 and that particular amount not being taxed that check?
Posted on 1/9/23 at 12:59 pm to HailToTheChiz
If it went into your Traditional 401k, then it was a traditional 401k contribution. They would have had to create a Roth 401k account to make Roth contributions. They will need to fix this on their end and deduct that amount on a future paycheck.
Sidenote, if your employer offers a Roth 401k option, you may want to look into whether or not you'd be better off doing Roth 401k rather than traditional. Plenty of resources online about this matter if you're interested.
Sidenote, if your employer offers a Roth 401k option, you may want to look into whether or not you'd be better off doing Roth 401k rather than traditional. Plenty of resources online about this matter if you're interested.
Posted on 1/9/23 at 1:49 pm to Sir Saint
Appreciate it 
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