Can I do an IRA to Roth conversion for me and my spouse?

[alcon835]

My income is too high to contribute to a Roth IRA directly, but I also rolled my old 401ks into a tIRA several years ago. Now my income is over the Roth limits so I am about to roll my tIRA funds into my 401k. After that's done, I'm going to invest funds into my tIRA and do an IRA to Roth conversion for the year. That's simple enough and I understand the steps necessary and I should be protected from extra tax liabilities and all that.

But my question is about my spouse. I have a Roth for myself and my spouse, can I do the same thing for her? Just open a tIRA in her name and do the conversion? We do Married Filing Jointly, so I haven't contributed to her Roth this year either due to hitting the income limits.

[Sandi_k]

Yes - you create a NON deductible tIRA for each of you, and then convert it to Roth a week later. Note that they are INDIVIDUAL accounts, so each of you can contribute the max allowable for 2022.

The important part is to make sure that your 401(k) --> IRA --> 401(k) transfer is complete by 12/31.

[MDM]

Yes, the I in IRA stands for individual so her traditional and Roth IRAs would be completely separate from yours.

The brokerage will distinguish traditional from Roth, but they won't know whether you deduct your traditional contribution or not.

Perhaps the most common problem people have with the backdoor Roth IRA process is not filling and filing Form 8606 correctly.  Doing draft 8606s for each of you before you make any contributions isn't a bad idea.  That way what you are about to do may make more sense when it comes to the real forms when filing next year.

[alcon835]

Yes - you create a NON deductible tIRA for each of you, and then convert it to Roth a week later. Note that they are INDIVIDUAL accounts, so each of you can contribute the max allowable for 2022.

The important part is to make sure that your 401(k) --> IRA --> 401(k) transfer is complete by 12/31.

Thank you!!

[alcon835]

Yes, the I in IRA stands for individual so her traditional and Roth IRAs would be completely separate from yours.

The brokerage will distinguish traditional from Roth, but they won't know whether you deduct your traditional contribution or not.

Perhaps the most common problem people have with the backdoor Roth IRA process is not filling and filing Form 8606 correctly.  Doing draft 8606s for each of you before you make any contributions isn't a bad idea.  That way what you are about to do may make more sense when it comes to the real forms when filing next year.

I really, really appreciate this! Since this is my first time, I will definitely do this!!