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Roth Contributions and Backdoor Rollover in Same Year
I converted about $140K from a traditional IRA to a Roth IRA in 2023. I also contributed the maximum amount of $7,500 to the Roth in small amounts over the course of the year. The conversion amount puts my MAGI over the amount allowed in order to make Roth contributions, but I was told by my financial planner that the conversion is not included in the MAGI calculation for the purposes of making the separate contributions. However, TT 2023 is including the conversion amount in my MAGI calculation, putting me over the income limit and resulting in a tax penalty of 6% of the Roth contributions. Is TT doing this correctly? I cannot find any IRS rules that talk about how Roth conversions are treated for the purposes of calculating MAGI when making contributions in the same year.