Announcement

Collapse
No announcement yet.

Another Backdoor Roth conversion (sorry)

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Another Backdoor Roth conversion (sorry)

    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?

  • #2
    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)

    Comment


    • #3


      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.

       

      Comment


      • #4
        Yea 8606 was filed in 2017

        No contributions in 2018

        No other money in pre tax ira’s

        Thanks!

        Troy

        Comment

        Working...
        X