backdoor Conversion ROTH IRA - Form 8606

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aaronbabu
Posts: 19
Joined: Sun Apr 29, 2018 9:47 pm

backdoor Conversion ROTH IRA - Form 8606

Post by aaronbabu » Fri Aug 10, 2018 2:05 pm

Hello,

I contributed $5500 to my ROTH IRA and wife's ROTH for 2018. Last week, my wife got a raise and bonus which will make us ineligible for ROTH. Our roth accounts are with vanguard. We do not have a non-deductible or deductible traditional IRA.
a) Can i re-characterize our roth as traditional ira and then do a backdoor conversion.
b) if i do the above, do i need to complete form 8606

Thanks,
Aaron


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FiveK
Posts: 5836
Joined: Sun Mar 16, 2014 2:43 pm

Re: backdoor Conversion ROTH IRA - Form 8606

Post by FiveK » Fri Aug 10, 2018 3:09 pm

Yes to both. No question mark needed. :)

See also Backdoor Roth IRA - Bogleheads.

mhalley
Posts: 6310
Joined: Tue Nov 20, 2007 6:02 am

Re: backdoor Conversion ROTH IRA - Form 8606

Post by mhalley » Fri Aug 10, 2018 4:33 pm

Sorry, the ? Was meant as abbreviation, not implying the answer was in question, ie, yes to both questions. So my abbreviation has now caused a lot of extra typing.

megabad
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Joined: Fri Jun 01, 2018 4:00 pm

Re: backdoor Conversion ROTH IRA - Form 8606

Post by megabad » Fri Aug 10, 2018 5:11 pm

Does tax law change affect this particular recharacterization in 2018?

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FiveK
Posts: 5836
Joined: Sun Mar 16, 2014 2:43 pm

Re: backdoor Conversion ROTH IRA - Form 8606

Post by FiveK » Fri Aug 10, 2018 5:14 pm

megabad wrote:
Fri Aug 10, 2018 5:11 pm
Does tax law change affect this particular recharacterization in 2018?
No. Roth contributions may still be recharacterized. It's Roth conversions that no longer may be recharacterized.

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