Author Topic: Backdoor contribution limit  (Read 292 times)

michael

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Backdoor contribution limit
« on: September 06, 2017, 09:28:01 PM »
Say you have contributed $18k to your 401k, then $5500 to your Roth IRA.  Supposedly you can contribute more to the Roth by doing a non-deductible traditional IRA contribution, then roll it over ("convert") to your Roth IRA.

Is there a limit on the amount you can contribute to the non-deductible traditional and then convert?  Can someone provide an IRS link for confirmation?

terran

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Re: Backdoor contribution limit
« Reply #1 on: September 06, 2017, 10:03:03 PM »
Nope, the limit across all IRAs is $5500, so if you've already contributed $5500 that's it. The backdoor roth is useful for people to make too much to be eligible for a direct roth contribution. They can still put in at most $5500 though.

There is something called a mega backdoor roth which is something else. It requires an employer plan set up in a very specific way (to allow both aftertax contributions and in service withdrawals or rollovers while still working).

MDM

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Re: Backdoor contribution limit
« Reply #2 on: September 07, 2017, 12:20:22 AM »

michael

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Re: Backdoor contribution limit
« Reply #3 on: September 07, 2017, 08:26:49 AM »
Thank you both, I knew I was forgetting something :doh: