@mcamp60 wrote:
sorry i fumbled my sentence...i meant to say "I did contribute to a Traditional Rollover IRA (Opened in 2023) - I can, if i choose to, also contribute $7.5K to the IRA for 2023 if i do it before the deadline in april this year."..
While i am interested in the backdoor Roth...i will take your advice and not pursue here and now. I believe my question was more than answered about IRA contributionsthank you so much, everyone, for helping me.
Yes, you can contribute up to $7500 designated for 2023 (just make sure to make the designation with the bank or broker so they don't count it for 2024 by mistake).
You can contribute a further $8000 for 2024 (the IRS raised the limit).
Turbotax will make the form 8606 for you, keep a copy with your other important papers.
How easily you can do a backdoor Roth depends on your total combined balance in all traditional IRAs. If that balance is more than zero, then the backdoor Roth doesn't really work the way its intended, as you must also convert a portion of the pre-tax balance to a Roth and that is a taxable event. If you just have one small IRA, the tax bite might not be so bad, but if your IRA balance is large, you might have to do it in several steps over time, or just keep making after-tax contributions to the traditional IRA and tracking the basis.
