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Help - Did I mess up my Backdoor Roth?

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  • Help - Did I mess up my Backdoor Roth?

    Thanks everyone in advance for the feedback. I know this is another BDR thread… I searched the forum, but did not have any luck finding my exact situation.

    Question: Did I mess up the Backdoor Roth? Are their any pro-rata implications with the scenario below?

    Situation: This is the first year we did the Backdoor Roth for both my wife and I ($12k). Yay! My wife also had an old 401(k) from her prior employer (~$200k, 70% Roth and 30% Traditional/pretax contributions). In an effort to simplify our finances we decided to rollover the old 401(k) to her Roth IRA. Since there were pretax contributions in the 401(k), we elected to pay the taxes on that amount so that all the money could be placed into her Roth IRA. As of now we have all the money in her Roth IRA account (~212k). We both have traditional IRAs, simply for the Backdoor that have $0 balances and do not have any SEP or SIMPLE IRA’s. Thanks everyone.

  • #2
    No. You have a balance of zero in all your non-Roth IRA’s. Even if you had any money in the non-Roth IRA’s, you’d have until 12/31 to move it out.


    • #3
      Looks good to me. You paid your taxes and will have a zero balance in your tIRA on 12/31.


      • #4
        Thank you everyone for the replies, very informative. I will keep things the way they are and hope that the Backdoor remains open for 2022! Merry Christmas and Happy New Year.