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

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?

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

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  If you do, then the non-deductible part must be spread over ALL accounts and cannot be withdrawn by itself.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.**

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1 Reply

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

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  If you do, then the non-deductible part must be spread over ALL accounts and cannot be withdrawn by itself.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.**
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