The Money Mustache Community

Learning, Sharing, and Teaching => Taxes => Topic started by: cowpuncher10 on May 15, 2018, 11:34:32 AM

Title: Been a while and lost my way need assistance
Post by: cowpuncher10 on May 15, 2018, 11:34:32 AM

Hello MMF,

It has been a loooong time since I have perused these forums, so long in fact that I can't remember the answer to a basic question that I am getting ready to ask. Please....hold the pitchforks.

It appears as if my AGI is over 119,000 thus there is no benefit to me continuing to put money in a traditional IRA. What is the best practice of converting a Traditional IRA to a Roth IRA if my Traditional IRA contributions were post tax? Shouldn't that mean that the conversion would be tax free? Can anyone advise?

Thanks!

Title: Re: Been a while and lost my way need assistance
Post by: MDM on May 15, 2018, 02:10:39 PM

See Backdoor Roth IRA - Bogleheads (https://www.bogleheads.org/wiki/Backdoor_Roth_IRA) for possible benefits and potential pitfalls.

Title: Re: Been a while and lost my way need assistance
Post by: 2Birds1Stone on May 15, 2018, 03:12:04 PM

If you can use other tax deferred accounts to lower taxable income (401k, HSA, etc) you may still be able to get some tax benefit.

Otherwise you can do a backdoor Roth.