Question Re: Backdoor Roth w/ 2012 and 2013 Contributions
Posted: Wed Jan 09, 2013 3:19 pm
My wife and I contributed $5,000 each in the 2012 contribution year to our Roth IRAs. Due to unforeseen circumstances, we now exceed the 2012 Roth contribution limits. Therefore, with the help of information on this board, I have successfully recharacterized the 2012 contributions to Traditional IRAs, which had no prior balance. So far so good.
Now, I want to convert the TIRAs to Roth, but I also want to make new IRA contributions for 2013 and get them into Roth one way or another. The problem is that we don't know whether we'll be over or under the Roth contribution limits for 2013, but it's likely we'll be over again.
Therefore, I'm wondering if there's any disadvantage to adding $5,500 in non-deductible 2013 contributions to each TIRA (which currently include the recharacterized 2012 contributions) and then converting the TIRAs (each including 2012 and 2013 non-deductible money) to Roth.
This seems to me to be the simplest option. I suppose that the only IRS implication will be to file Forms 8606 regarding the non-deductible TIRA contributions for 2012 and 2013, correct?
Thanks in advance for your time and thoughts on this. I read a number of previous threads but didn't find anything addressing this exact situation. Please let me know if I omitted anything of importance from my explanation.
Thanks!
Now, I want to convert the TIRAs to Roth, but I also want to make new IRA contributions for 2013 and get them into Roth one way or another. The problem is that we don't know whether we'll be over or under the Roth contribution limits for 2013, but it's likely we'll be over again.
Therefore, I'm wondering if there's any disadvantage to adding $5,500 in non-deductible 2013 contributions to each TIRA (which currently include the recharacterized 2012 contributions) and then converting the TIRAs (each including 2012 and 2013 non-deductible money) to Roth.
This seems to me to be the simplest option. I suppose that the only IRS implication will be to file Forms 8606 regarding the non-deductible TIRA contributions for 2012 and 2013, correct?
Thanks in advance for your time and thoughts on this. I read a number of previous threads but didn't find anything addressing this exact situation. Please let me know if I omitted anything of importance from my explanation.
Thanks!