Roth Recharacterization and contribution

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Topic Author
pulsar
Posts: 2
Joined: Fri Feb 24, 2023 12:06 pm

Roth Recharacterization and contribution

Post by pulsar »

I typically do a Roth backdoor investment but accidentally contributed to Roth directly for Tax year 2022, I realized this in February 2023 and did a recharacterization via Fidelity. Then followed to convert the traditional IRA to Roth for the backdoor.

Am I allowed to do $6000 contribution for the year 2023 again for doing a backdoor this year?
User avatar
FiveK
Posts: 15742
Joined: Sun Mar 16, 2014 2:43 pm

Re: Roth Recharacterization and contribution

Post by FiveK »

pulsar, welcome to the forum.

Yes, conversion amounts do not affect contribution limits.

You made a 2022 contribution. You may make a 2023 contribution.
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celia
Posts: 16774
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Roth Recharacterization and contribution

Post by celia »

+1 above

Plus the contribution limit starting in 2023 is $6,500 (or $7,500 if you are over 50).
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
Topic Author
pulsar
Posts: 2
Joined: Fri Feb 24, 2023 12:06 pm

Re: Roth Recharacterization and contribution

Post by pulsar »

Thank you guys, this forum is a treasure trove of info. Appreciate the help
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