back door IRA

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Samy
Posts: 58
Joined: Mon Aug 13, 2007 7:05 pm
Location: Los Angeles

back door IRA

Post by Samy » Mon Apr 16, 2018 11:37 am

67, married, and retiring next year.
500K in 401K and IRA.
7k/mo from pension and SoSec when I retire.

For years I have been thinking that I pay less taxes (lower tax bracket) when I retire. I was doing my taxes, and I realized that I will be paying more (if not the same amount) in taxes in retirement that now. I searched Bogleheads and came across Backdoor IRA and Mega Backdoor IRA. But could not find clear cut details. It looks like it may be a good thing for me.

Can someone clarify the Backdoor IRA rules and how it works? How to qualify and how to actually implement it?

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Pajamas
Posts: 6015
Joined: Sun Jun 03, 2012 6:32 pm

Re: back door IRA

Post by Pajamas » Mon Apr 16, 2018 11:40 am


PFInterest
Posts: 2125
Joined: Sun Jan 08, 2017 12:25 pm

Re: back door IRA

Post by PFInterest » Mon Apr 16, 2018 11:42 am

the backdoor rIRA are for people to need more tax protected space.
you need to read the wiki which someone posted above, and learn about the pro-rata rule.

you might be more interested in a Roth Conversion strategy given your upcoming retirement.

chevca
Posts: 1874
Joined: Wed Jul 26, 2017 11:22 am

Re: back door IRA

Post by chevca » Mon Apr 16, 2018 12:43 pm

A quick search of past posts came up with this... viewtopic.php?f=10&t=223774&p=3456214#p3456214

You already have a Roth. So, it seems you are eligible to contribute to Roth IRAs and you need not worry about back door Roth contributions.

Are you thinking there's a way to add more to the Roth than the limits allow? There's not.

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