Here's my situation:
Currently have a former 401k plan that I rolled into an IRA at Nowthwestern mutual.
Now I have a 401k with current employer through Fidelity that allows directed investments as well as employer sponsored funds.
In order to contribute to Backdoor Roth I am currently receiving a rollover check from NWM in order to roll into my current 401k to eliminate any traditional/rollover IRA funds that could cause tax implications.
Question:
If the rollover is complete prior to April 17, 2017 can I contribute $5500 to my new traditional IRA then backdoor it into a Roth without "pro-rata" implications for tax year 2016 or is this dependent on the amount of IRA funds in accounts as of Dec 31, 2016 if making a late contribution/rollover?
If this is an option will I run into problems contributing to backdoor Roth if I do this again after April 17, 2017 for tax year 2017?
Am I just better off forgetting about 2016 contribution altogether to make things simpler?
Thanks for any input
Currently have a former 401k plan that I rolled into an IRA at Nowthwestern mutual.
Now I have a 401k with current employer through Fidelity that allows directed investments as well as employer sponsored funds.
In order to contribute to Backdoor Roth I am currently receiving a rollover check from NWM in order to roll into my current 401k to eliminate any traditional/rollover IRA funds that could cause tax implications.
Question:
If the rollover is complete prior to April 17, 2017 can I contribute $5500 to my new traditional IRA then backdoor it into a Roth without "pro-rata" implications for tax year 2016 or is this dependent on the amount of IRA funds in accounts as of Dec 31, 2016 if making a late contribution/rollover?
If this is an option will I run into problems contributing to backdoor Roth if I do this again after April 17, 2017 for tax year 2017?
Am I just better off forgetting about 2016 contribution altogether to make things simpler?
Thanks for any input
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