Back Door Roth IRA Question.

[genmed4144]

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!

[cgossage]

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

[jfoxcpacfp]

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?

[genmed4144]

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.