Hi everyone, I’m kind of naive with this retirement stuff and I think I may have messed up. I probably should have come here first, but I would at least like to be educated now.
I had a retirement plan with my former job. I was only there a year-ish and got $2,000 (I was dumb and didn’t contribute over that year; lesson learned). I took out the money from that IRA account and transferred it to my personal Roth IRA.
I first took out $1,900 that I earned over the year and said I didn’t want federal taxes withheld.
I thought that was a mistake, so I earned a final $100 from my final checks and also had that transferred to my Roth IRA. This time I asked for my taxes to be withheld.
I struggled to find info on this, but just found a site that said an IRA to Roth IRA conversion you should not withhold taxes.
So, I think I messed up by doing so this most recent time. But what does this mean? I’m still somewhat confused what effect withholding taxes has on the conversion. Also, what future implications does this decision have (withholding or not withholding)?
I would appreciate if someone could explain. Thank you in advance!
Submitted October 02, 2020 at 07:53PM by lovetoomuch10 https://ift.tt/2Siio90
