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Back door Roth Query - 2017 contribution and conversion in 2018

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  • Back door Roth Query - 2017 contribution and conversion in 2018

    hi all

    Just realized that I had not done the backdoor Roth this year. I called Vanguard where I usually do this every year and they said no.

    Is it possible to put in 2017 IRA contribution in Jan 2018 and make the Roth conversion so that it still applies to 2017? How would that affect my 2018 contributions and conversions if at all?


  • #2
    Yes, you still can make IRA contributions up until the filling deadline for 2017. They will not affect your 2018 contributions. Just report on two different years' tax returns.


    • #3
      Yes, not an issue. Just make sure you specify 2017 tax year when you make the non-deductible IRA contribution (whether you make it in 2017 or 2018). It doesn't matter when you convert -- some say it's better to wait awhile due to the step doctrine, but plenty of people, including WCI and me, convert the next business day.


      • #4
        You can make your non-deductible contibution for the 2017 Tax Year until April 15, 2018. Your conversion will be effective in the 2018 tax year, but that is not an issue. You can effectively accomplish the same thing.


        • #5
          Muchas gracias everyone!


          • #6
            The downside (hindsight being 20 / 20) is that your $5,500 could now be worth about $6,500 if you had made the contribution in January. Better late than never, though!