@bmo742 wrote:
Thank you for your response as it does help clarify things.
It is not that I do not think the backdoor Roth is not allowed, more that I am intimidated by the process and do not want to make any more tax errors moving forward. If you have any advice on how to do this with the traditional IRA funds at some point this calendar year I would appreciate it as my IRA custodian is not familiar with it, which may be a larger problem.
A backdoor Roth is relatively simple as long as you have no pre-tax funds (tax deductible) in any traditional IRA. All IRAs that you own are added together for this purpose, but you don't include pre-tax workplace plans like 401(k), 403(B) or other qualified workplace plans. If you have some tax-deductible money in traditional IRAs, it's trickier.
Do you have any pre-tax funds in traditional IRAs? (After the characterizations, you will have $3350 of after-tax funds in a traditional IRA, but what about pre-tax or deductible money?)
