peanut4us
05-21-2004, 08:52 PM
Cwap! For some reason, I was ACTUALLY getting around to filing a whole bunch of our statements and started really looking at some only to discover that DH accidentally made his 2003 contribution (that we paid in March) an IRA contribution instead of a Roth IRA! Mine is correct but his isn't.
The good news is that we paid taxes as though he had done a Roth, so I believe that Uncle Sam now owes us some dough. Is that right? I know we need to refile our taxes. Is there a penalty for having screwed up?
Now here is the tricky part, should we convert the ira to a roth? we did a roth on purpose because our financial planner said we needed to have some retirement investments that were NOT tax deferred, for balance??? In any case, our mistake now means that we did not fulfill that goal. DH is hesitant to convert it because it would be considered a Roth IRA for 2004... and so, we wouldn't be able to add that much money into it next tax season. I don't think it matters because while we both maxed the Roth limit for 2003, I am quite positive that our cash flow will be less in March of next year, so we will only be able to fund one maxed roth account. I figure, big deal if it's mine or his. He says that I already have a lot of investments with my 401K. Does it matter if it is mine or his? Usually we try to fund any non401K stuff for him first because he is SAHD/self-employed and has no employer retirement benefits.
What do you financial guru types think?
The good news is that we paid taxes as though he had done a Roth, so I believe that Uncle Sam now owes us some dough. Is that right? I know we need to refile our taxes. Is there a penalty for having screwed up?
Now here is the tricky part, should we convert the ira to a roth? we did a roth on purpose because our financial planner said we needed to have some retirement investments that were NOT tax deferred, for balance??? In any case, our mistake now means that we did not fulfill that goal. DH is hesitant to convert it because it would be considered a Roth IRA for 2004... and so, we wouldn't be able to add that much money into it next tax season. I don't think it matters because while we both maxed the Roth limit for 2003, I am quite positive that our cash flow will be less in March of next year, so we will only be able to fund one maxed roth account. I figure, big deal if it's mine or his. He says that I already have a lot of investments with my 401K. Does it matter if it is mine or his? Usually we try to fund any non401K stuff for him first because he is SAHD/self-employed and has no employer retirement benefits.
What do you financial guru types think?