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Get your taxes done using TurboTax
Yes, the Backdoor Roth only works as intended if your traditional/SEP/SIMPLE IRAs are empty (don't have pre-tax funds). A backdoor Roth is supposed to be a tax-free conversion but this only works if you don't have pre-tax funds in the account since otherwise, the pro-rata rule applies and parts of the conversion will be taxable.
Yes, if you are able to remove the pre-tax funds from your traditional IRA with a reverse rollover to a 401(k) then you will be able to convert the funds in 2023 without any issues. Just make sure there are no pre-tax funds in any of your traditional/SEP/SIMPLE IRAs on December 31, 2023.
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‎April 17, 2023
10:02 AM
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