Author Topic: Large backdoor ROTH contribution  (Read 1181 times)

Goldy

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Large backdoor ROTH contribution
« on: January 09, 2016, 05:19:13 PM »
We are being relocated for work and I now have an interesting opportunity to extract the equity in my house and put it to better use in the market.  I think this will also be the first year that we will not qualify for the full roth limit due to income so I'm wondering if this would be a good opportunity to fund a backdoor mega contribution.  Depending on what our house sells for I am expecting to net around 230k and will need approximately 60k for a down payment on the new house giving me a total of 170k to invest.  From what I understand all I really need to do is fund an IRA then convert it to a roth, seems straight forward.  Am I missing anything or are there any other things to watch out for? 

Side question, would this contribution be available for withdraw after 5 years like the pipeline contributions?  I don't expect I would need it but good to know anyway.

MDM

  • Senior Mustachian
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Re: Large backdoor ROTH contribution
« Reply #1 on: January 09, 2016, 06:23:17 PM »
Am I missing anything...?
The $5500/yr/person contribution limit.

Ursus Major

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  • Location: Silicon Valley, CA
Re: Large backdoor ROTH contribution
« Reply #2 on: January 09, 2016, 09:59:21 PM »
Am I missing anything...?
The $5500/yr/person contribution limit.
And if your earned income is less than that, you can only contribute up to your earned income.