The banker which is helping to set up the back-door IRA asked us to check with the accountants that to review our Form 1040 to understand if we are qualified to set up the back-door IRA.
Which number(line) and place where we should look from Form 1040 to know if we are qualified for the setup? What is the threshold for the back-door IRA to allow setting up?
You'll need to sign in or create an account to connect with an expert.
Let me answer it this way.
You would do a backdoor Roth of your income is above these limits and you still want to contribute to a Roth. A backdoor Roth is simply a contribution to a non-deductible traditional IRA and then a conversion to a Roth IRA.
MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. For many people, MAGI is identical or very close to adjusted gross income. MAGI doesn't include Supplemental Security Income (SSI).
So there is no line per se, though you can start with Line 11 of the 1040 and then add the items above if applicable. You are qualified to do a backdoor Roth if you MAGI is above the levels above. If it is below, just make a straight Roth IRA contribution and save yourself a step.
Thank you for the question @raclimin
All the best,
Marc T.
TurboTax Live Tax Expert
27 Years of Experience Helping Clients
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
raclimin
Level 1
osy85
New Member
hyunil96tax
New Member
Taxger
Level 2
matt_terry
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.