Backdoor IRA

sdarora — Mon, 03 Feb 2020 20:03:16 GMT

I am not able to contribute to Roth IRA because of the income limitations. I have read about Backdoor IRA but I am not 100% sure how it would work in my situation. I am confused if it matters that there is already money in Traditional IRA which was contributed before-taxes.

I have a Traditional IRA (converted from previous employer 401k ) that has money in it from past (pre-tax). I have Roth IRA that also has money from 2018 (it was after-tax money).

Can I put 5K cash in Traditional IRA (after-tax money) and can I simply move that 5K cash from Traditional IRA to Roth IRA without paying any penalty & taxes? Is this backdoor IRA?

Re: Backdoor IRA

VictorW9 — Mon, 03 Feb 2020 20:26:49 GMT

Executing a backdoor IRA can be very technical. You have to be careful or else you will end up paying more taxes than need be. I am not sure what accounts you have your IRAs but I know Vanguard has an online tool that can walk you step by step through the process. Or, you can seek the advice of a professional to help guide you through the process.

topic Re: Backdoor IRA in Retirement tax questions

Backdoor IRA

Re: Backdoor IRA