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Any restrictions on m?oving a 2018 IRA contribution to a 2018 Roth IRA

Forum|Forum|7 years ago
June 6, 2019
1 reply
14 views

I am not eligible to make a 2018 Roth IRA contribution. So can I make the 2018 contribution to my Traditional IRA and them move it into my Roth IRA?

TurboTax Premier Online

Best answer by macuser_22

What you are describing is called a "Backdoor Roth". So yes you can do that but there is one BIG caveat. If you already have ANY existing Traditional IRA account, then only a part of the conversion will be not taxable.

This so-called “back-door Roth” method ONLY works if you have NO OTHER Traditional IRA accounts. If you do, then the non-deductible part must be spread over ALL accounts and cannot be withdrawn by itself. Only if you started with NO Traditional, SEP & SIMPLE IRA and ended up with a zero amount in ALL Traditional, SEP & SIMPLE IRA accounts will this Roth conversion not be taxable.

Answer

Alumni - Champ

What you are describing is called a "Backdoor Roth". So yes you can do that but there is one BIG caveat. If you already have ANY existing Traditional IRA account, then only a part of the conversion will be not taxable.

This so-called “back-door Roth” method ONLY works if you have NO OTHER Traditional IRA accounts. If you do, then the non-deductible part must be spread over ALL accounts and cannot be withdrawn by itself. Only if you started with NO Traditional, SEP & SIMPLE IRA and ended up with a zero amount in ALL Traditional, SEP & SIMPLE IRA accounts will this Roth conversion not be taxable.

**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.**