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Retirement tax questions
1. In terms of tax reporting you have done everything correctly thus far.
2. You can convert the $590 and the $6,000 transaction into your ROTH together.
3. Your tax reporting for tax year 2020 will show deductible traditional IRA contributions that are recharacterized to a taxable ROTH conversion.
A backdoor Roth IRA allows you to get around income limits by converting a Traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions.
Doing a backdoor Roth conversion is a two step process.
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March 8, 2021
9:15 AM