Another Backdoor Roth conversion (sorry)

[SValleyMD]

Yeah, I know this should be simple and I read the tutorials but still had questions

My wife had $5500 that a contributed to her tIRA on 4/2017 in a money market account that I forgot to convert right away.

It currently has $5624.30 in it now

No other contributions this year.

So I can roll the 5500 into a back foot Roth now then do I just leave the rest in the tIRA or roll that part into her 401k?

[jacoavlu]

assuming the 5500 contribution was nondeductible, you convert the entire balance to Roth. You'll owe tax on conversion of balance minus basis (5500) = 124.

Theoretically you could convert only 5500 and pay zero tax, leave 124 in the account, and rollover that to a 401k to avoid tax. But that would be a poor use of your time and brainpower.

did you file form 8606 with your 2017 tax return?

Have you done your 2018 contributions?

And last, you have $0 in any other pretax IRAs? (Including SEP, Simple)

[Peds]

SValleyMD wrote:

So I can roll the 5500 into a back foot Roth now then do I just leave the rest in the tIRA or roll that part into her 401k?

Click to expand...

no just convert the entire amount. make sure you select 100%, all shares, whatever it says.

 

[SValleyMD]

Yea 8606 was filed in 2017

No contributions in 2018

No other money in pre tax ira’s

Thanks!

Troy