@techie353 wrote:
@Opus 17
@dmertz
You mentioned,
You can then do a Roth conversion in 2022, and it won't be taxed ("backdoor Roth"). You can also do a new backdoor Roth by making a 2022 non-deductible IRA contribution and then converting it.
Will I be able to do both in 2022 or only one or the other? And a new backdoor Roth will also be non-taxed?
If I have the straight of it now, the situation at the end of 2021 that will be shown on your tax return (after reporting the recharacterization and the rollover to the 401(k)_) is that you have one traditional IRA with a $6000 non-deductible basis.
In that case, you can do a Roth conversion at any time without paying tax. You can also make a $6000 (or $7000, if over age 50) non-deductible IRA contribution for the 2022 tax year, and then convert it to a Roth.
There's no point in doing it in 4 steps when it will work just as well in 3 steps. Make a 2022 non-deductible contribution to the same IRA, then convert all $12,000 to your Roth IRA. You can do it at any time in 2022 that is convenient for you. On your 2022 tax return, you would report the non-deductible contribution and the conversion in the normal way and complete the "backdoor" Roth.
