Sorry for the millionth backdoor question, but before I finalize what I am doing I wanted to check with the wisdom of the crowds for any red flags.
I'm doing a 2016 backdoor for my wife. Unfortunately I did not do this in 2016. We moved $5500 into the account in February 2017 for the tax year 2016. I am planning to add another $5500 later in 2017 for tax year 2017, and then complete the conversion for the whole amount $11000 by 12/31/17 so that I can report it on my 2017 taxes. If I understand correctly, none of this needs to be reported on my 2016 tax return, and it will all go on the 2017 return since it was done in the calendar year 2017. Does this sound like correct protocol?
I'm planning ahead for myself a little better this year. I have a traditional IRA that I am moving into my 401k to avoid pro-rata, so that I can do a backdoor for 2017 within the calendar year and make my reporting basis much easier.
Thanks for the advice!
I'm doing a 2016 backdoor for my wife. Unfortunately I did not do this in 2016. We moved $5500 into the account in February 2017 for the tax year 2016. I am planning to add another $5500 later in 2017 for tax year 2017, and then complete the conversion for the whole amount $11000 by 12/31/17 so that I can report it on my 2017 taxes. If I understand correctly, none of this needs to be reported on my 2016 tax return, and it will all go on the 2017 return since it was done in the calendar year 2017. Does this sound like correct protocol?
I'm planning ahead for myself a little better this year. I have a traditional IRA that I am moving into my 401k to avoid pro-rata, so that I can do a backdoor for 2017 within the calendar year and make my reporting basis much easier.
Thanks for the advice!
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