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Backdoor Roth IRA and under the income limit

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  • Backdoor Roth IRA and under the income limit

    In January this year I contributed $5500 to a traditional IRA and then converted it to Roth. I was anticipating the possibility of a large sign-on bonus after fellowship that would put me over the limit to contribute directly to a Roth IRA. Between my fellowship salary not being that large, having a month off between finishing fellowship and starting my new job, and maxing out my 401k/HSA at my new job in all of 4 months, I don't think my taxable income will even reach the phase out limit... Do I just file my taxes as one normally would if they did a backdoor roth?

  • #2
    There are no income restrictions of any kind on a non-deductible traditional IRA contribution or a Roth conversion.

    You still fill out Form 8606 for the non-deductible contribution and the Roth conversion and report the total rollover on Form 1040 Line 15a and the taxable amount on 15b.

    There would be no difference no matter what your income is.

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