If my IRA grew from $6000 to $6500 by the time I converted it to a Roth, can I still contribute $500

atrlau Member Posts: 5 Newcomer
edited January 15 in Retirement Income

I contributed $6000 to my Traditional IRA this year, and then it grew to $6500 by the time I converted it to a Roth IRA. Does this mean I can still contribute $500 to my Roth IRA, or does the $500 from the money I gained ($6000 → $6500) count towards the $6500 contribution limit? Thanks so much!

Best Answer

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74
    Answer ✓

    Hello, atrlau!

    That is a great question!

    The $500 earnings will be taxable upon conversion but do not count toward the contribution limit. You can still contribute another $500.