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Back Door Roth IRA Question.

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  • Back Door Roth IRA Question.

    Hi,

    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.

    Thanks!

  • #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.

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    • #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?
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #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.

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