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Retirement tax questions
What step does not match?
Note that my answer says: "Be SURE to answer the follow up that the are choosing to make this contribution NON-DEDUCTIBLE - if that screen comes up."
A backdoor Roth only works if the Traditional IRA contribution is non-deductible. It may or may not qualify for a deduction if your MAGI is under the phase-out amount and you are not covered by a retirement plan at work. You don't want the deduction for a Backdoor Roth. That screen won't come up unless it is all or partially deductible.
Also, your IRA and your spouses IRA are totally separate and cannot be combined.
Note that my answer says: "Be SURE to answer the follow up that the are choosing to make this contribution NON-DEDUCTIBLE - if that screen comes up."
A backdoor Roth only works if the Traditional IRA contribution is non-deductible. It may or may not qualify for a deduction if your MAGI is under the phase-out amount and you are not covered by a retirement plan at work. You don't want the deduction for a Backdoor Roth. That screen won't come up unless it is all or partially deductible.
Also, your IRA and your spouses IRA are totally separate and cannot be combined.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎June 6, 2019
6:03 AM