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Roth limits with characterization

Tmh4 — Sat, 04 Jan 2020 20:46:48 GMT

I converted a traditional IRA of about 10 K into my Roth. Can I still contribute to my Roth this year?

Re: Roth limits with characterization

Bsch4477 — Sat, 04 Jan 2020 20:56:48 GMT

Yes. Your conversion amount does not limit your Roth contribution.

Re: Roth limits with characterization

Dadbob — Wed, 04 Mar 2020 22:26:14 GMT

I contributed to my Roth IRA and did a Conversion from a traditional IRA to my Roth Turbo tax said I'll owe a penalty for excess contributions. Is there a limit on how much money I can contribute via the "backdoor'? Or did I just fat finger something?

Re: Roth limits with characterization

AnnetteB6 — Fri, 06 Mar 2020 17:39:38 GMT

If you contributed to your Roth IRA and also made a non-deductible contribution to your Traditional IRA with the intention of converting that to a Roth IRA, then you may have exceeded your contribution limit. The limit is imposed on the combination of contributions to both types of IRAs within a given year.

So, the 'backdoor' contribution is essentially limited to your annual IRA contribution limit based on your age.

Take a look at the following TurboTax article for more details: Can I contribute to both a Traditional and a Roth IRA?

There is no limit imposed when just converting a Traditional IRA to a Roth IRA, as in the case for the original question shown above.

@Dadbob