How to Undo a Roth IRA Contribution If Your Income Is Too High

You can still recharacterize a Roth contribution and move the money to a traditional IRA.

Kimberly Lankford's avatar
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Question: I know I can't undo conversions from a traditional IRA to a Roth anymore. But what if I contribute to a Roth and then discover my income is too high? ��J.C., East Lansing, Mich.

Answer: Even though the new tax law prohibits people from undoing a conversion they made from a traditional IRA to a Roth after December 31, 2017 (called recharacterizing), you can still recharacterize a Roth contribution and move the money to a traditional IRA.

You can contribute to a Roth IRA if your modified adjusted gross income in 2018 is less than $135,000 if you're single or $199,000 if you file jointly. If you contribute to a Roth but your income is too high, you can ask your IRA administrator to move your Roth contribution (and any earnings on it, which your administrator will calculate) into a traditional IRA before the deadline to file your tax return for the year of your contribution.

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Kimberly Lankford
Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.