Good morning,
First of all I am huge fan of WCI. Thank you for all the guidance and giving us a platform to learn.
I am currently an associate that does not get a retirement account from my employer. I have been contributing to a traditional IRA, one for my wife and one for me.
I am currently doing some work as an independent contractor. So I started thinking about the backdoor Roth.
We currently have around $18000 in an traditional IRA under my name and another $5500 in an IRA under my wife's name. We have deducted these contribuations on our tax returns in the past.
My understanding is that I can open up a 401 K through the S-corp and can roll my IRA into the 401K and then roll it into a roth afterwards. Do I have to pay taxes on the gains on the traditional IRA funds that I will be transfering.
Let me know if that is possible for us to do? And or if it even make sense, my gross income will be about $250 K through my W2 and another $30-40 K through my IC work.
Thank you for taking the time to help me sort this out.
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