So I learned today that I would be ineligible for direct IRA because I make too much. Prior to this knowledge I opened an Roth IRA account through vanguard and deposited 6k for 2019 last week. What am I supposed to do now?
It's fairly simple, and you need to do it before you file. Call and they can open a traditional IRA, convert the 2018 roth contributions to the traditional IRA. Then you can backdoor back into the Roth if you want. Your income limit says you can't contribute "directly" to a Roth. Apparently.
Oh ok thank you I'll do that!
If your income is near the limit, contributions to (non roth) 401k will lower your AGI
Oh ok but it is nowhere near it. Too high. But thsts good to know thank you
Does amazon have in plan conversion? In future, you can do after tax contribution then in plan Roth conversion.
Yes that's what I will do next time. I learned about that today. But do I have to do anything with Roth IRA I just opened and deposited my own money into?
Oh damn I found that I would have to pay 6 percent penalty of total deposit when I file income taxes