Hi all,
So this is interesting and thank you for the information. Basically, my wife has about $14,000 rolled over deductible pretax from a previous employer into traditional IRA for 2021. We have been putting in $5000 for year 2021 into the SAME traditional IRA and converted this SAME after-tax dollars into a Roth, as per recommended by fidelity we could do. Are we actually are NOT allowed to do this backdoor roth bc we have an existing amount of $14,000 pre-tax dollars? Will we then be taxed on the $5000 we converted? We had this same $14000 ($16000 or so with gains) basis remaining at end of year 2021. How does this affect our reporting on TurboTax?
We were told we could do this by our financial institution. If this is true that we could not do this, Going forward how can my wife do a backdoor conversion if she has existing money in her traditional IRA?
Thank you!
