Backdoor Roth IRA

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student
Posts: 2988
Joined: Fri Apr 03, 2015 6:58 am

Backdoor Roth IRA

Post by student » Wed Apr 17, 2019 8:17 am

You may find the recent article about backdoor Roth IRA interesting.

https://www.marketwatch.com/story/heres ... 2019-04-17

fabdog
Posts: 416
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Backdoor Roth IRA

Post by fabdog » Wed Apr 17, 2019 8:45 am

I found it misleading at best... The headline is backdoor IRA's, and in one paragraph the author notes that a true backdoor is simple, in that you make a non deductible contribution, and then shortly transfer that to a Roth.

He then spends the rest of the article in pitfalls, which all relate to having IRA deductible balances, which will be taxed as part of the pro rata rule

But those scenarios are nothing new, and aren't true backdoor Roths. If you have those issues you can work on other strategies such as rolling those back into a 401(k)

I liked the clickbait in the middle of the article with a ghost advertising "The worst financial mistake you can make" I assume different folks will get served different clickbait

Mike

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