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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.
‎December 21, 2020
9:45 AM