So, the wife and I are over the MAGI threshold for contributing to a Roth this year, but as I understand it, a basic backdoor Roth conversion is available. According to Michael Kitces' website, the steps are as follows:
How To Do A Backdoor Roth IRA Contribution Safely
1.Verify there are no other pre-tax IRAs
2.If there are, roll over existing pre-tax IRAs to a 401(k) (if available) to avoid the IRA aggregation rule
3.Contribute to non-deductible IRA (if eligible)
4.Invest funds in the non-deductible IRA
5.Keep invested for 1 year (or if you’re more aggressive follow the “one-statement” rule)
6.Convert to Roth IRA
7.Repeat steps 2-5 annually as desired
8.Do not at any point along the way note that you are doing a “backdoor Roth contribution”!https://www.kitces.com/blog/how-to-do-a-backdoor-roth-ira-contribution-while-avoiding-the-ira-aggregation-rule-and-the-step-transaction-doctrine/
I have a 401k at work, but from what I can tell, that doesn't limit my ability to open a non-deductible
Traditional IRA. Once I've done that, and a bit of time has passed, I can then convert it to a Roth.
Has anyone here done this? What is the process for making the actual conversion from the non-deductible tIRA to the Roth IRA?
Appreciate any input!