Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
arijacgom
Returning Member

back door roth IRA conversion and payment of tax-quarterly or not

When do you have to pay taxes on a backdoor Roth IRA conversion-in the quarter they were done or just annually?

2 Replies
HasaniJ
Employee Tax Expert

back door roth IRA conversion and payment of tax-quarterly or not

If you're doing a true back door Roth it means you are beyond the income threshold for receiving a tax deduction on your traditional IRA and you're also phased out for income purposes regarding a Roth IRA.  This means the money going into the IRA should be after tax dollars which will then be transferred into a Roth.  You will receive a 1099R to be used for filing on your next tax return where no additional taxes should be paid.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Opus 17
Level 15

back door roth IRA conversion and payment of tax-quarterly or not

You don't pay tax on a "back door" Roth IRA conversion.

 

If you are doing a regular Roth IRA conversion, the taxes are due in the quarter the income was realized. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Privacy Settings
v