IRA SITUATION

[michaelmars]

in 2005 client contributed to ira eventhough she had no taxable income, i told her to convert it to a roth. now it appears the bank converted her entire ira account to a roth not just that years contribution.

Any ideas what to do? so far the irs hasn't contacted her but they will!

i think my options are to accept the roth and pay the taxes or see if the bank can correct what they did even though its over 2 years ago. Any one have another options?

[Pacun]

in 2005 client contributed to ira eventhough she had no taxable income, i told her to convert it to a roth."

Why would you suggest to convert it to a Roth IRA to begin with?

[Julie]

I would assume it's because she had no taxable income, hence no benefit from an IRA deduction.

in 2005 client contributed to ira eventhough she had no taxable income, i told her to convert it to a roth."

Why would you suggest to convert it to a Roth IRA to begin with?

[Pacun]

Oops, I thought he said no income.