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Roth Contribution with Existing Rollover IRA

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  • Roth Contribution with Existing Rollover IRA

    I had a rollover IRA with money from previous employer 401k's.  In the process of completing a reverse rollover to move the money into my current 401k to be able to start working on annual backdoor Roth IRA contributions.  Only issue is I'm trying to determine when I can start without taking a tax hit.  The money was removed from my rollover IRA on 3/29/2017 (last week).  I realize there is no way I can contribute without taking a tax hit for 2016 but do I have to wait until after April 18th, 2017, Jan 1st, 2017 or after April 17, 2018 or some other date?



  • #2
    Now.  Pro rata taxation is determined based on the EOY value (on 12/31 year of conversion).  So, as long as there is no money in pre-tax IRAs (Trad, SEP, SIMPLE) on 12/31/2017, there will be no tax penalty for a backdoor Roth.