Retirement tax questions

Sorry but the "backdoor" conversion really only works well when you make a non deductible contribution and convert it right away.  Since you have earnings as well the converted amount cannot be moved in a vacuum.

 

Each portion of the conversion will be partially taxable... the form 8606 does the math. 

 

For instance :

 

total non deductible contributions = 50K

total earnings =  10K 

if you convert  10K  then   1/5th will be taxable and 4/5ths will be non taxable

 

 

 

Doing a backdoor Roth conversion is a two-step process.

 

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