Advice on my plan

[HelpMeLearn]

We are looking for ways to increase our investments and I am interested in doing bdroths for me each year.

But, I have a ira rolled over from a 401k from years ago which has a balance of only $1400.  I can't have that and a roth, correct?  I am thinking of converting this to a roth and paying the taxes on that conversion.  Would I then still be able to invest the total $5500 for this current year, doing a roth converstion on that total amount as well?

Husband has 401k as well as a ira from previous employees.

[AureliusMD]

Still relatively new to this stuff myself, but my understanding is that conversions and contributions are completely separate, so yes, you can convert the $1400 to Roth and still contribute the full $5500 amount for the year.

Regarding the husband's holdings, both contributions and conversions are dealt with by the individual, regardless of whether he or she is married. Thus your husband's 401k and IRA (Roth or not) should not affect your conversions or contributions, and likewise yours will not affect his.

[wa2106]

Conversion amounts do not affect backdoor roth contribution amounts.

Retirement accounts are individual so your husband's holdings do not affect your ability to do BD roth.

Good luck!

[jhwkr542]

For all of your questions, you're just dealing with the pro-rata rule.

HelpMeLearn wrote:

I am thinking of converting this to a roth and paying the taxes on that conversion.  Would I then still be able to invest the total $5500 for this current year, doing a roth converstion on that total amount as well?

Click to expand...

Yes, and this is what I would do as well.  If you get it all taken care of by Dec. 31, it becomes much easier with filing paperwork.