I have 4 Traditional IRAs for tax deduction started but placed them in CDs per family advice (regret this now as they won't mature until 2017-2020, each one was for 5 years and I started the first one in 2012). Subsequently, opened 1 Roth IRA for 2015.
However, recently changed jobs and no longer eligible for Roth IRA and Traditional IRA deduction (high income earner/tax bracket). Can only do nondeductible IRA.
Question 1: Can I still open a nondeductible Traditional IRA and then convert to a Roth IRA for 2016 given my previous Traditional IRAs in CDs? Does the pro rata rule work against me?
Question 2: Should I open nondeductible Traditional IRA for this year (2016) in Vanguard, wait for the old CDs to mature and transfer them to Vanguard, and then start backdoor Roth IRA in 2020 (if it still exists)? Is this the mega back door IRA?
I am interested in the backdoor Roth IRA but I'm not sure if my previous deductible Traditional IRAs (in CDs) make it financially worth it to try or to wait for my CDs to mature and then start the backdoor Roth IRA process?
OR should I just open regular taxable accounts from Vanguard? and forget about nondeductible IRAs altogether?
Thanks
However, recently changed jobs and no longer eligible for Roth IRA and Traditional IRA deduction (high income earner/tax bracket). Can only do nondeductible IRA.
Question 1: Can I still open a nondeductible Traditional IRA and then convert to a Roth IRA for 2016 given my previous Traditional IRAs in CDs? Does the pro rata rule work against me?
Question 2: Should I open nondeductible Traditional IRA for this year (2016) in Vanguard, wait for the old CDs to mature and transfer them to Vanguard, and then start backdoor Roth IRA in 2020 (if it still exists)? Is this the mega back door IRA?
I am interested in the backdoor Roth IRA but I'm not sure if my previous deductible Traditional IRAs (in CDs) make it financially worth it to try or to wait for my CDs to mature and then start the backdoor Roth IRA process?
OR should I just open regular taxable accounts from Vanguard? and forget about nondeductible IRAs altogether?
Thanks
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