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sydneysamantha
Level 1

Reverse Rollover in 2020 + Backdoor Roth IRA for 2019 & 2020 possible?

Hi guys,

 

For 2019, I did not contribute any amount to IRA and I've been looking to see if I could take the advantage of new contribution deadline of July. 

 

I am in the process of reverse rolling over my traditional IRA so that I can contribute to my traditional IRA (non deductible) then roll over to Roth.

 

If I reverse roll over 100% of my traditional IRA to 401(k), am I still eligible to make 2019 contribution to my traditional IRA then rollover without causing issues lie pro-rata rule and others?

 

Thank you,

 

Sydney

 

 

4 Replies
macuser_22
Level 15

Reverse Rollover in 2020 + Backdoor Roth IRA for 2019 & 2020 possible?

For a backdoor Roth to work the total 2020 December 31 combined value of all Traditional,  SEP and SIMPLE IRA accounts must be zero.  If you have a 401(k) rollover IRA and roll it into a 401(k) (assuming your 401(k) plan allows that) then it will not enter into the calculations.

 

Yes, you can make a 2019  non-delectable contribution  before July 15 and report it on a 2019 8606 form with your 2019 tax return.   You can also make a 2020 Traditional IRA contribution that you would report on your 2020 8606 next year.

 

Any or all can be converted to a Roth IRA before the end of 2020.   Most people convert immediately to avoid having to deal with earnings within the Traditional IRA.

**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.**
amit2020
Level 3

Reverse Rollover in 2020 + Backdoor Roth IRA for 2019 & 2020 possible?

@sydneysamantha 
@macuser_22 
I am filing amendment for 2019. I am just double checking to see if there are any ways I could do rollover from T-IRA to R-IRA for "2019 tax year" at this time in Oct 2020 ? During amendment preparation, I realised I could have taken advantage of rollover but didn't do it.  

Critter-3
Level 15

Reverse Rollover in 2020 + Backdoor Roth IRA for 2019 & 2020 possible?

Sorry but you are way past the deadline. 

macuser_22
Level 15

Reverse Rollover in 2020 + Backdoor Roth IRA for 2019 & 2020 possible?


@amit2020 wrote:

@sydneysamantha 
@macuser_22 
I am filing amendment for 2019. I am just double checking to see if there are any ways I could do rollover from T-IRA to R-IRA for "2019 tax year" at this time in Oct 2020 ? During amendment preparation, I realised I could have taken advantage of rollover but didn't do it.  


That would have had to have been completed before Dec 31, 2019.

**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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