Back Door Roth IRA

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anthony1
Posts: 1
Joined: Tue Oct 08, 2019 7:50 pm

Back Door Roth IRA

Post by anthony1 » Tue Oct 08, 2019 8:00 pm

Hi, My current annual income takes me out of the IRS income limits for being able to contribute to a roth IRA. I am maxing my 401k contributions (with employee matching up to 6% of my annual income). I would like to pursue what I have heard to be a "Back Door IRA" where I can place money into a Roth IRA, even though I've exceeded the published annual limits. I have a few questions:

1. Is this what some are calling a back door IRA?
2. I have fidelity as my investing agency for my company's retirement savings plan. How do I go about starting a back door IRA through them?
3. What additional tax forms will I fill out, and how do I know if I incorrectly created the back door IRA?

mighty72
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Joined: Fri May 04, 2018 11:22 pm
Location: Somewhere in the West

Re: Back Door Roth IRA

Post by mighty72 » Tue Oct 08, 2019 9:18 pm

Welcome to the forum!

Please check this out
https://www.bogleheads.org/wiki/Backdoor_Roth

You can fidelity and they will guide you through it.

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David Jay
Posts: 6989
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Back Door Roth IRA

Post by David Jay » Tue Oct 08, 2019 9:26 pm

Welcome to the forum!

The link above has full details, but the most common “stumbling block” is if you have a traditional IRA with a large tax-deferred balance. If you don not have a traditional IRA with a tax-deferred balance then you can utilize this procedure.

Additionally, if you are married your spouse can contribute $6000 per year as well.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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