Help Me Not Screw Up Back Door Roth

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ny_knicks
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Joined: Wed Jan 04, 2017 11:20 pm

Help Me Not Screw Up Back Door Roth

Post by ny_knicks » Thu Dec 07, 2017 10:53 am

Quick question I believe I have this right. I just want to make sure. Both GF and I are over phase out for contributing to Roth.

I have $ in 401k and Roth.

She has $ in 403b, Trad Ira and Roth.

For me to do the backdoor I just contribute post tax to a Trad Ira and convert.

For her she needs to roll over her Trad Ira to 403b to avoid pro rating and then do the same as me?

Am I missing anything? As always much appreciated!

JW-Retired
Posts: 6526
Joined: Sun Dec 16, 2007 12:25 pm

Re: Help Me Not Screw Up Back Door Roth

Post by JW-Retired » Thu Dec 07, 2017 11:00 am

You have it if you hold to the requirement that on 12/31/2017 you still do not to have any money in tIRAs, SEP IRAs, Simple IRAs, and rollover IRAs.

And don't forget to practice filling out the 8606 forms so you can tell if your tax software is understanding you.
JW
Retired at Last

Thesaints
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Joined: Tue Jun 20, 2017 12:25 am

Re: Help Me Not Screw Up Back Door Roth

Post by Thesaints » Thu Dec 07, 2017 12:23 pm

If you do the backdoor during the year while you still have a tIRA, but then you rollover that tIRA before 12/31, there is no tax liability, right ?
At least that’s what I understand from filing 8606

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BolderBoy
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Location: Colorado

Re: Help Me Not Screw Up Back Door Roth

Post by BolderBoy » Thu Dec 07, 2017 12:30 pm

Thesaints wrote:
Thu Dec 07, 2017 12:23 pm
If you do the backdoor during the year while you still have a tIRA, but then you rollover that tIRA before 12/31, there is no tax liability, right ?
At least that’s what I understand from filing 8606
Correct.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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