I am a 401K participant and I opened an IRA for my wife as she is not working. I deducted the amount of IRA from my Taxes. 2 years later IRS denied the deduction and billed me for the taxes which i promptly paid. My question is since i paid the taxes on my IRA amount does it become automatically a Roth IRA . What should i do to fix this so that i do not end up paying taxes again upon withdrawal or conversion to roth.
You can convert that money into a Roth IRA, but you will have to pay tax on any growth that has occurred since then. I would suggest doing that as soon as possible. I can halp you with the Roth and conversion for no cost. Let me know.