Backdoor Roth + Traditional 401k Contribution in Same Year

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Tbfuhrman
Posts: 31
Joined: Sat Jan 02, 2021 10:22 am

Backdoor Roth + Traditional 401k Contribution in Same Year

Post by Tbfuhrman »

I have a quick question about completing a Backdoor Roth. From my understanding, the following is okay to do, but I want to be absolutely sure:

If I would like to complete a Backdoor Roth (non-deductible contribution to Traditional IRA > Roth), I am also still allowed to take a Traditional 401k pre-tax deduction in the same tax year, correct? Meaning I have no deductible contributions currently in any Traditional IRA accounts. The only deductible contribution would be from a Traditional 401k.

My understanding is that the IRS does not want you to have any deductible contributions in a Traditional IRA in order to do the Backdoor Roth, but a deductible contribution to a Traditional 401k is still okay.

Am I correct in this assumption, that this can be done in the same tax year?
bloom2708
Posts: 8399
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Backdoor Roth + Traditional 401k Contribution in Same Year

Post by bloom2708 »

Yes. Pre-tax or Roth or post-tax 401k is completely separate. No overlap.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
Topic Author
Tbfuhrman
Posts: 31
Joined: Sat Jan 02, 2021 10:22 am

Re: Backdoor Roth + Traditional 401k Contribution in Same Year

Post by Tbfuhrman »

bloom2708 wrote: Wed Jan 13, 2021 5:05 pm Yes. Pre-tax or Roth or post-tax 401k is completely separate. No overlap.
that is what I thought! very much appreciated!
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