too late for backdoor roth ira conversion?

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Topic Author
jimmy
Posts: 69
Joined: Sat Apr 27, 2013 1:29 am

too late for backdoor roth ira conversion?

Post by jimmy »

If I haven't done so already can you still open a Traditional IRA and convert it to a Roth for 2015?
I'm pretty sure you can but wasn't sure if the conversion had to be done in 2015 or by 4/15/16..
thanks..
livesoft
Posts: 85971
Joined: Thu Mar 01, 2007 7:00 pm

Re: too late for backdoor roth ira conversion?

Post by livesoft »

Sure you can. Even if you contribute for 2015, the conversion will go on your 2016 return. You can do multiple conversions in the same year. Be aware that a recharacterization has consequences.

Repeat after me: A contribution is not a conversion is not a recharacterization is not a contribution is not a conversion is not a reharacterization.
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Topic Author
jimmy
Posts: 69
Joined: Sat Apr 27, 2013 1:29 am

Re: too late for backdoor roth ira conversion?

Post by jimmy »

I think I got it.. to be clear I would make a 2015 non deductible IRA contribution for $5500 and immediately convert to a Roth. The conversion would be reported on my 2016 taxes. If I was to make a 2016 nondeductible contribution in year 2016 for $5500 I would report both conversions of $11k on my taxes for 2016..

A contribution is not a conversion is not a characterization is not a contribution is not a conversion is not a characterization.
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