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Back Door Roth IRA Question.

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  • Back Door Roth IRA Question.


    I just had a short question regarding the process for the backdoor Roth IRA.

    When making a contribution to our traditional IRA through our broker (e.g. Vanguard, Fidelity, TD Ameritrade, etc), do we make the specification of whether these funds are deductible or non-deductible? Or is that determination based on whether or not you deduct in your taxes?

    I was just a bit confused as when I was about to make a $5500 contribution, I never saw any specification to determine whether these funds are deductible or non-deductible, so I figured that determination would be made when I file my taxes.


  • #2
    Good question.  You don't specify at the time of the contribution.  You will do this on form 8606 when you file your taxes.


    • #3
      Deductibility of a TIRA is determined by your tax bracket and whether you have a plan available through work so, yes, it is determined at the time of tax filing. As a resident, I am mildly surprised that you cannot make a direct contribution to your Roth, but perhaps your spouse bumps up your income over the limit. Yes or no?
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


      • #4
        Thank you both for the responses. That puts me at ease as to making the contribution.

        RE: jfoxcpacfp, yes that's correct. My spouse happens to be in a different occupation and helped to support the both of us through my residency for which I am grateful for.