Starting a back door Roth IRA

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Topic Author
MattRN1990
Posts: 3
Joined: Tue Feb 04, 2025 12:18 am

Starting a back door Roth IRA

Post by MattRN1990 »

I've looked at information and feel comfortable doing the process since it's the first time my MAGI ever hit this high.

My question is: Can I use the funds from Traditional IRA that I make to roll over aka convert into an existing Roth IRA or do I need to make a entirely new IRA as well. And just leave my funds in my old Roth IRA instead.
BogleTaxPro
Posts: 889
Joined: Sat Apr 04, 2020 6:08 pm

Re: Starting a back door Roth IRA

Post by BogleTaxPro »

MattRN1990 wrote: Tue Feb 04, 2025 6:40 am I've looked at information and feel comfortable doing the process since it's the first time my MAGI ever hit this high.

My question is: Can I use the funds from Traditional IRA that I make to roll over aka convert into an existing Roth IRA or do I need to make a entirely new IRA as well. And just leave my funds in my old Roth IRA instead.
I'm confused over how you've worded this. So let me try to break it down. You can use your existing Roth IRA to receive the funds. If you have no traditional IRA currently, then you create a new one and make your non-deductible contribution there before you roll it over to the Roth. If you DO have an existing traditional IRA with no assets, feel free to use that one. If you have an existing traditional IRA with previously deducted contributions then you'll need to pro-rate the taxes on your Roth rollover and it's probably not worth it.

Also, review: https://www.bogleheads.org/wiki/Backdoor_Roth
Last edited by BogleTaxPro on Tue Feb 04, 2025 9:56 am, edited 1 time in total.
toddthebod
Posts: 8482
Joined: Wed May 18, 2022 12:42 pm

Re: Starting a back door Roth IRA

Post by toddthebod »

BogleTaxPro wrote: Tue Feb 04, 2025 9:48 am previously deducted contributions (aka basis)
Basis would be from previous non-deductible contributions.

OP, feel free to reuse or combine accounts as needed, the IRS doesn't care.
BogleTaxPro
Posts: 889
Joined: Sat Apr 04, 2020 6:08 pm

Re: Starting a back door Roth IRA

Post by BogleTaxPro »

toddthebod wrote: Tue Feb 04, 2025 9:54 am
BogleTaxPro wrote: Tue Feb 04, 2025 9:48 am previously deducted contributions (aka basis)
Basis would be from previous non-deductible contributions.

OP, feel free to reuse or combine accounts as needed, the IRS doesn't care.
Thanks Todd. edited my post (need more caffeine, I do).
Topic Author
MattRN1990
Posts: 3
Joined: Tue Feb 04, 2025 12:18 am

Re: Starting a back door Roth IRA

Post by MattRN1990 »

Thanks so much for the quick reply! Glad to know I can and funnel it into my current Roth IRA I've had for 8 years.
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