I invested money into a traditional IRA in 2013, but I now realize I can't deduct the money I contributed on my 2013 tax return. However, I am still eligible to invest that same money in a Roth IRA. Is it possible to correct this mistake?

ANSWER

The BIDaWIZ Team's Answer:

The deadline to contribute to a traditional or Roth IRA is the tax due date or when you file your return, whichever comes earlier. This is good news as you still have time to convert it to a Roth for the 2013 tax year. If you haven't filed your tax return yet, you can request that the custodian treats it as a nondeductible IRA contribution and then convert it into a Roth IRA. Please note that you might as well also contribute for the 2014 tax year now for the compounding return and tax benefits.