What if you put 6,000 into Roth then get a raise later in the year?

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It’s called “recharacterization”. If you made a contribution in good faith assuming you would be eligible, but later become ineligible, then the funds get recharacterized out of the Roth. There’s probably rules about whether the gain on the $6000 has to be recharacterized as ordinary investment income and such, but that’s a second order effect.


Someone correct me if wrong, but I believe everyone is able to do the backdoor roth. It’s just pointless for someone within the threshold of contributing straight to it. So if you are close and arent sure, perhaps do a backdoor roth, just in case


You’ll have to do an over contribution withdrawal. There should be a form from your broker


Jail. Believe or not, straight to jail.


You withdraw your contribution for that year and gains if applicable to deal with the issue of being over the income limit. I’m not sure if you can do a “backdoor” Roth the same year of the withdrawal but you will definitely be good for the next year as long as you fit the criteria for a Backdoor Roth making sense for you like not having any traditional or rollover IRA accounts. This is also based on your AGI so if you are married with a spouse who doesn’t have income and you max out your 401k and have a good amount of deductions you can still possibly make it work but I’m assuming this is a hypothetical situation.