Roth contribution in same year as Traditional IRA to ROTH conversion

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I am planning to convert part of my Traditional IRA to a Roth IRA for 2023. Can I also make a contribution to a ROTH IRA for the same tax year? Or would that be considered an over contribution?

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SteamTrainAnswer

Level 15

Expert Reviewed

You should be OK with that.

The conversion from a traditional IRA to a Roth IRA is NOT considered a contribution....but the conversion does add to your taxable income (unless some portion of the traditional IRA contributions were not deductible). Thus, some folks do the conversions over a couple years to keep taxes down.

In case it matters, remember that you do normally need working income (W-2 wages or self-employed profit) in order to make the Roth IRA contribution itself.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

SteamTrainAnswer

Level 15

Expert Reviewed

You should be OK with that.

In case it matters, remember that you do normally need working income (W-2 wages or self-employed profit) in order to make the Roth IRA contribution itself.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

burgerguy14Author

Level 4

Thanks. I do not have w-2 income. I am retired and receive rental property income. But this year the rental income will be close to zero or slightly negative. That must be why TurboTax created a Form 5329-T and "fined" me for over contributing (on paper).

VolvoGirl

Level 15

Sorry you can not make any new contributions. You can convert a IRA. You need earned income from W2 wages or a Net Profit on Schedule C to contribute. Rental income doesn't count as earned income not just because you had a loss.