topic Backdoor Roth IRA - Conversion and Contribution Help Need in Investing https://ttlc.intuit.com/community/investing/discussion/backdoor-roth-ira-conversion-and-contribution-help-need/01/1071979#M320 <P>Hello,</P><P>Would like to seek some advice for those who may have gone down this path before.&nbsp; I am late to the game of finding out about the "backdoor Roth IRA" and would like to know what is the best way to approach and get started.&nbsp; Here is my situation.</P><P>&nbsp;</P><P>- Existing Rollover IRA - From previous employer 401k plans.&nbsp; Insignificant balance of about $10k.</P><P>- Existing Roth IRA&nbsp;</P><P>- Newly created Traditional IRA</P><P>- I am above the standard Roth IRA contribution limit, hence looking at the backdoor Roth IRA</P><P>- Presume I am at a tax bracket where the $10k would not push me into another tax bracket (irrelevant for me)</P><P>&nbsp;</P><P>It is now January 2020, I would like to ideally fund before April so that I can make a $6k contribution for 2019 as well as an additional $6k contribution for 2020.&nbsp; What would be the best way to structure and get started with my back door Roth IRA?</P><P>&nbsp;</P><P>I am wondering if the possible is doable:</P><P>&nbsp;</P><P>1) Perform a complete conversion of all $10k in my Rollover IRA to my Roth IRA.&nbsp; As this conversion will be done in 2020, it will hit my 2020 taxes, and I will look to pay taxes on the full $10k at my income tax bracket.</P><P>2) Contribute $6k for 2019.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; I plan on filing this contribution as "non-deductible", and hence hope I do not have to pay any further tax on this "after-tax" $6k upon conversion to Roth IRA.</P><P>3) Contribute $6k for 2020.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; Similarly, I also plan on filing as "non-deductible and convert the full $6k to Roth IRA.</P><P>&nbsp;</P><P>Does #2 and #3 trigger any additional tax liabilities/complications for me?&nbsp; Would technically funding for 2019 now trigger the "pro-rata" rule as I technically held the Rollover IRA in 2019?&nbsp; How best to approach if there's another way?</P><P>&nbsp;</P><P>Thanks in advance!</P> Mon, 03 Feb 2020 13:52:39 GMT zzzvt123 2020-02-03T13:52:39Z Backdoor Roth IRA - Conversion and Contribution Help Need https://ttlc.intuit.com/community/investing/discussion/backdoor-roth-ira-conversion-and-contribution-help-need/01/1071979#M320 <P>Hello,</P><P>Would like to seek some advice for those who may have gone down this path before.&nbsp; I am late to the game of finding out about the "backdoor Roth IRA" and would like to know what is the best way to approach and get started.&nbsp; Here is my situation.</P><P>&nbsp;</P><P>- Existing Rollover IRA - From previous employer 401k plans.&nbsp; Insignificant balance of about $10k.</P><P>- Existing Roth IRA&nbsp;</P><P>- Newly created Traditional IRA</P><P>- I am above the standard Roth IRA contribution limit, hence looking at the backdoor Roth IRA</P><P>- Presume I am at a tax bracket where the $10k would not push me into another tax bracket (irrelevant for me)</P><P>&nbsp;</P><P>It is now January 2020, I would like to ideally fund before April so that I can make a $6k contribution for 2019 as well as an additional $6k contribution for 2020.&nbsp; What would be the best way to structure and get started with my back door Roth IRA?</P><P>&nbsp;</P><P>I am wondering if the possible is doable:</P><P>&nbsp;</P><P>1) Perform a complete conversion of all $10k in my Rollover IRA to my Roth IRA.&nbsp; As this conversion will be done in 2020, it will hit my 2020 taxes, and I will look to pay taxes on the full $10k at my income tax bracket.</P><P>2) Contribute $6k for 2019.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; I plan on filing this contribution as "non-deductible", and hence hope I do not have to pay any further tax on this "after-tax" $6k upon conversion to Roth IRA.</P><P>3) Contribute $6k for 2020.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; Similarly, I also plan on filing as "non-deductible and convert the full $6k to Roth IRA.</P><P>&nbsp;</P><P>Does #2 and #3 trigger any additional tax liabilities/complications for me?&nbsp; Would technically funding for 2019 now trigger the "pro-rata" rule as I technically held the Rollover IRA in 2019?&nbsp; How best to approach if there's another way?</P><P>&nbsp;</P><P>Thanks in advance!</P> Mon, 03 Feb 2020 13:52:39 GMT https://ttlc.intuit.com/community/investing/discussion/backdoor-roth-ira-conversion-and-contribution-help-need/01/1071979#M320 zzzvt123 2020-02-03T13:52:39Z
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topic Backdoor Roth IRA - Conversion and Contribution Help Need in Investing
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https://ttlc.intuit.com/community/investing/discussion/backdoor-roth-ira-conversion-and-contribution-help-need/01/1071979#M320
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<P>Hello,</P><P>Would like to seek some advice for those who may have gone down this path before.&nbsp; I am late to the game of finding out about the "backdoor Roth IRA" and would like to know what is the best way to approach and get started.&nbsp; Here is my situation.</P><P>&nbsp;</P><P>- Existing Rollover IRA - From previous employer 401k plans.&nbsp; Insignificant balance of about $10k.</P><P>- Existing Roth IRA&nbsp;</P><P>- Newly created Traditional IRA</P><P>- I am above the standard Roth IRA contribution limit, hence looking at the backdoor Roth IRA</P><P>- Presume I am at a tax bracket where the $10k would not push me into another tax bracket (irrelevant for me)</P><P>&nbsp;</P><P>It is now January 2020, I would like to ideally fund before April so that I can make a $6k contribution for 2019 as well as an additional $6k contribution for 2020.&nbsp; What would be the best way to structure and get started with my back door Roth IRA?</P><P>&nbsp;</P><P>I am wondering if the possible is doable:</P><P>&nbsp;</P><P>1) Perform a complete conversion of all $10k in my Rollover IRA to my Roth IRA.&nbsp; As this conversion will be done in 2020, it will hit my 2020 taxes, and I will look to pay taxes on the full $10k at my income tax bracket.</P><P>2) Contribute $6k for 2019.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; I plan on filing this contribution as "non-deductible", and hence hope I do not have to pay any further tax on this "after-tax" $6k upon conversion to Roth IRA.</P><P>3) Contribute $6k for 2020.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; Similarly, I also plan on filing as "non-deductible and convert the full $6k to Roth IRA.</P><P>&nbsp;</P><P>Does #2 and #3 trigger any additional tax liabilities/complications for me?&nbsp; Would technically funding for 2019 now trigger the "pro-rata" rule as I technically held the Rollover IRA in 2019?&nbsp; How best to approach if there's another way?</P><P>&nbsp;</P><P>Thanks in advance!</P>
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Backdoor Roth IRA - Conversion and Contribution Help Need
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<P>Hello,</P><P>Would like to seek some advice for those who may have gone down this path before.&nbsp; I am late to the game of finding out about the "backdoor Roth IRA" and would like to know what is the best way to approach and get started.&nbsp; Here is my situation.</P><P>&nbsp;</P><P>- Existing Rollover IRA - From previous employer 401k plans.&nbsp; Insignificant balance of about $10k.</P><P>- Existing Roth IRA&nbsp;</P><P>- Newly created Traditional IRA</P><P>- I am above the standard Roth IRA contribution limit, hence looking at the backdoor Roth IRA</P><P>- Presume I am at a tax bracket where the $10k would not push me into another tax bracket (irrelevant for me)</P><P>&nbsp;</P><P>It is now January 2020, I would like to ideally fund before April so that I can make a $6k contribution for 2019 as well as an additional $6k contribution for 2020.&nbsp; What would be the best way to structure and get started with my back door Roth IRA?</P><P>&nbsp;</P><P>I am wondering if the possible is doable:</P><P>&nbsp;</P><P>1) Perform a complete conversion of all $10k in my Rollover IRA to my Roth IRA.&nbsp; As this conversion will be done in 2020, it will hit my 2020 taxes, and I will look to pay taxes on the full $10k at my income tax bracket.</P><P>2) Contribute $6k for 2019.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; I plan on filing this contribution as "non-deductible", and hence hope I do not have to pay any further tax on this "after-tax" $6k upon conversion to Roth IRA.</P><P>3) Contribute $6k for 2020.&nbsp; Subsequently transfer and "convert" to Roth IRA.&nbsp; Similarly, I also plan on filing as "non-deductible and convert the full $6k to Roth IRA.</P><P>&nbsp;</P><P>Does #2 and #3 trigger any additional tax liabilities/complications for me?&nbsp; Would technically funding for 2019 now trigger the "pro-rata" rule as I technically held the Rollover IRA in 2019?&nbsp; How best to approach if there's another way?</P><P>&nbsp;</P><P>Thanks in advance!</P>
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