@Critter-3
Thank you very much, it is too complicated to understand, may I ask a few more follow up question related to your response?
That "procedure" can only work of all these requirements are met:
1) No Traditional IRA account whatsoever can exist (that includes any SEP or SIMPLE IRA accounts) at the start.
2) The Tradition IRA contributions must be reported on a 8606 form as non-deductible.
3) The conversion to a ROTH must be shortly after the contribution to avoid taxable gains.
4) The entire Traditional IRA value must be zero that the end of the year of conversion.
Questions:
1) What does it mean? I opened traditional IRA long time ago, but did not contribute too much money there.
2) Hard to understand. In general, roth contribution is after tax money (non deductible), while tradition IRA contribution is before tax money (contribution should be deductible for some people).
3) What do you mean shortly? If I made the traditional contribution years ago and money sitting there for years, can I transfer $10k to Roth IRA ($10k of backdoor roth conversion)?
4) There is no way to make partial conversion? And leave some asset in traditional IRA?
