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I am a bit confused as to what the total cap is and backdoor etc. when it comes to Roth Conversions. My wife and I have had fully funded Roth accounts each year (for at least the last 10 years). My question is can we convert our other IRA's into a Roth when we already fully fund our original Roth accounts? Is there a backdoor for us??
People keep mentioning converting and backdoor but I can never quite tell whether they are dealing with already funded Roth accounts or not??
ok... so this year we have contributed $14,000 to Roth IRA and $24,000 to my 401K. So how much can I convert to my Roth after that??? As much as I want?? Your quote was
"You can convert any amount you want." I have a traditional IRA with $200,000 balance (for example) can I convert all of that after taxes to my Roth?? Even though I have already fully funded it for 2019?
ok... so this year we have contributed $14,000 to Roth IRA and $24,000 to my 401K. So how much can I convert to my Roth after that??? As much as I want?? Your quote was
"You can convert any amount you want." I have a traditional IRA with $200,000 balance (for example) can I convert all of that after taxes to my Roth?? Even though I have already fully funded it for 2019?
You could convert all 200k in addition to making the 14k in contributions
"You can convert any amount you want." I have a traditional IRA with $200,000 balance (for example)
you are going to pay through your nose in taxes if you convert all of that in one go, don't know your tax bracket but depending on that it may not even be worth it to convert in small amounts. It only makes sense if the contribution is from a non deductible source such as a non-deductible IRA because you already paid taxes on it anyway. It does not make sense to pay more taxes now, tax deferral is always preferred in my view.
I am a bit confused as to what the total cap is and backdoor etc. when it comes to Roth Conversions. My wife and I have had fully funded Roth accounts each year (for at least the last 10 years). My question is can we convert our other IRA's into a Roth when we already fully fund our original Roth accounts? Is there a backdoor for us??
People keep mentioning converting and backdoor but I can never quite tell whether they are dealing with already funded Roth accounts or not??
You aren't contributing when you convert, hence no restrictions. You will pay regular income tax on the conversion monies.
A backdoor Roth IRA is when you can not legally contribute to a Roth IRA directly, and instead contribute to a traditional IRA and then immediately convert to the Roth.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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+1 @k374.
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