Over the past 5 years, I have been contributing yearly to what I thought was a roth IRA account. I recently learned that I setup the account incorrectly, and it was all this time a traditional IRA account (not a roth IRA). I called my brokerage, and they said they can convert the account into a Roth IRA. My questions are two fold:
- Do I need to file amendments to my past tax returns? I declared that I have been contributing to a roth IRA all along, but technically, I was contributing to a traditional IRA that was later converted to a roth IRA.
- Should I withhold federal and/or state income taxes during the conversion from the traditional to roth IRA? The conversion form indicates "IRA regulations required the custodian of the IRA from wich you are converting to withhold income taxes at the rate of 10% from the converted amount unless yiou elect not to have withholding apply". Important to note is that I contributed after-tax income into the traditional IRA account.
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