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  • Back Door Roth Limit

    Can I do more than 5500 back door Roth conversion without being double taxed? If not, is it because of a limit on

    1. the non-deductible contribution I can make to a traditional IRA

    2. or the amount I can convert to Roth


  • #2
    You can convert an unlimited amount to a Roth IRA each year.

    You can contribute only a limited amount to an IRA each year (currrently $5,500 or $6,500 if age 50+)

    See Explaining Backdoor Roth IRAs.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Thanks, read the news letter, good stuff! Just want to make sure, when you say I can only contribute $5,500 (I'm under 60), is it that it's out right illegal to contribute more than $5,500 non-deductible money to TIRA, or that I can still do it but have to be double taxed on the amount exceeding $5,500? For example, if I put $7,000 non-deductible into my TIRA, would I be forced to retrieve that additional $1,500 or I just need to pay tax again on that $1,500 when I convert all $5,500 to Roth?

       

       

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      • #4
        Let me google that for you   :

         

        https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

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        • #5




          Thanks, read the news letter, good stuff! Just want to make sure, when you say I can only contribute $5,500 (I’m under 60), is it that it’s out right illegal to contribute more than $5,500 non-deductible money to TIRA, or that I can still do it but have to be double taxed on the amount exceeding $5,500? For example, if I put $7,000 non-deductible into my TIRA, would I be forced to retrieve that additional $1,500 or I just need to pay tax again on that $1,500 when I convert all $5,500 to Roth?
          Click to expand...


          Sorry I overlooked your question, but I could swear I've already answered it. Did you perhaps also post this in another thread?

          It's not "illegal" but it is prohibited. As Dreamgiver's link states, you will be taxed 6% on the overcontribution for every year that the excess remains and you will owe 6% tax on the growth and income. Much better to contribute the difference to a taxable account.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6




            Sorry I overlooked your question, but I could swear I’ve already answered it. Did you perhaps also post this in another thread?
            Click to expand...


            No, this is the only place I posted this question. To my own defense (well, not really), I did google quite hard online and did not find answer, also encountered the IRS link posted by DreamGiver during the process, just didn't read through to the bottom, my bad ops:

            Thank you and thumbs up for you both!

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