Author Topic: First time backdoor Roth  (Read 1182 times)

Goldy

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First time backdoor Roth
« on: April 05, 2016, 07:16:28 PM »
 I'm being relocated this year and the gross up is going to push me beyond the income limits for contributing to a Roth but I still want to contribute.  Do I need to keep back door contributions separate from normal contributions?  I'm wondering if I need to open a new account to make this work or if I can lump them together.

Ursus Major

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Re: First time backdoor Roth
« Reply #1 on: April 06, 2016, 12:15:50 AM »
I'm not sure what you mean by "normal" contributions, but if you are referring to contributions to a regular IRA account, there is no need to keep them separate. However any pre-tax money in a regular IRA at the end of a year means that the backdoor Roth is partially taxable, because some money for the conversion is deemed to be pre-tax money. And that doesn't change, whether you have one IRA account or multiple ones.

MDM

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Re: First time backdoor Roth
« Reply #2 on: April 06, 2016, 12:17:27 AM »
See https://www.bogleheads.org/wiki/Backdoor_Roth_IRA - that may answer all your questions, even those you didn't know to ask. ;)