401(k), Backdoor Roth

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coffeehubcap
Posts: 185
Joined: Wed Sep 19, 2007 7:56 pm

401(k), Backdoor Roth

Post by coffeehubcap » Thu Feb 08, 2018 11:42 am

If you have a 401(k) with your employer and you want to do a backdoor Roth, say with Vanguard by opening and IRA and converting to a Roth but your MAGI is over $10,000 can you still do the backdoor Roth? The IRS says NO to contributions to an IRA. Just wondering if the outside IRA makes a difference to the rule?

chevca
Posts: 1483
Joined: Wed Jul 26, 2017 11:22 am

Re: 401(k), Backdoor Roth

Post by chevca » Thu Feb 08, 2018 12:05 pm

I'm not fully understanding your question. But, the 401k is not considered an IRA, so no worries there. When you're talking of MAGI being over $10k, it seems like the income being talked about is nowhere near needing to consider a backdoor Roth strategy. Just contribute to a Roth IRA.

coffeehubcap
Posts: 185
Joined: Wed Sep 19, 2007 7:56 pm

Re: 401(k), Backdoor Roth

Post by coffeehubcap » Thu Feb 08, 2018 12:34 pm

The IRS says no to contributions to a Roth if MAGI is over 10K.

chevca
Posts: 1483
Joined: Wed Jul 26, 2017 11:22 am

Re: 401(k), Backdoor Roth

Post by chevca » Thu Feb 08, 2018 12:38 pm

I'm not sure where you saw that, but there's quite a bit more income room before you can not directly contribute to a Roth IRA.

https://www.rothira.com/roth-ira-limits

sailaway
Posts: 210
Joined: Fri May 12, 2017 1:11 pm

Re: 401(k), Backdoor Roth

Post by sailaway » Thu Feb 08, 2018 12:38 pm

coffeehubcap wrote:
Thu Feb 08, 2018 12:34 pm
The IRS says no to contributions to a Roth if MAGI is over 10K.
Maybe you mean $100k?

Moreover, a conversion is not a contribution, that is the whole point of the backdoor Roth.

coffeehubcap
Posts: 185
Joined: Wed Sep 19, 2007 7:56 pm

Re: 401(k), Backdoor Roth

Post by coffeehubcap » Thu Feb 08, 2018 12:43 pm


coffeehubcap
Posts: 185
Joined: Wed Sep 19, 2007 7:56 pm

Re: 401(k), Backdoor Roth

Post by coffeehubcap » Thu Feb 08, 2018 12:45 pm

Ah, that's right a conversion is not a contribution. That makes sense.

sailaway
Posts: 210
Joined: Fri May 12, 2017 1:11 pm

Re: 401(k), Backdoor Roth

Post by sailaway » Thu Feb 08, 2018 12:47 pm

coffeehubcap wrote:
Thu Feb 08, 2018 12:45 pm
Ah, that's right a conversion is not a contribution. That makes sense.
.

This is why it helps to give more info. MFS is pretty rare around here.

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