Roth limits with characterization

Forum|Forum|6 years ago
January 4, 2020
1 reply
1 view

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

Bsch4477

Level 15

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

Dadbob

Level 2

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?

AnnetteB6

Level 15

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

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