Brownslave688
You want a toe? I can get you a toe.
Anyone got any experience?
Back door ROTH
- Thread starter Brownslave688
- Start date
UpstateNYUPSer(Ret)
Well-Known Member
Are you talking about converting a Traditional to a Roth?
UpstateNYUPSer(Ret)
Well-Known Member
This has nothing to do with this thread.
Brownslave688
You want a toe? I can get you a toe.
Ok the way I understand it is we can contribute to a traditional IRA but wouldn't get a tax break because of income. So then we could roll it into a ROTH.
UpstateNYUPSer(Ret)
Well-Known Member
You would pay taxes on the amount that you convert.
Exactly.
It's still legal to do
Brownslave688
You want a toe? I can get you a toe.
Yeah I know they'll be closing that loophole eventually
I listen to a lot of financial shows and they recommend that for many people.
I would definitely let someone handle that for you, so you don't make any mistakes.
No , only on any gains. Thst was after tax money that he never got a deduction from.
Brownslave688
You want a toe? I can get you a toe.
We would of already paid taxes on them. We make to much to qualify for the tax break.
UpstateNYUPSer(Ret)
Well-Known Member
A backdoor Roth IRA allows you to get around income limits by converting a Traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is limited if your income is beyond certain limits, but there are no income limits for conversions.
Roth IRA Conversion Taxes. When you convert from a Traditional IRA to a Roth IRA you pay income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income.
IRA Comparison - Roth vs Traditional IRA - Fidelity
Brownslave688
You want a toe? I can get you a toe.
My wife's group sold out to the hospital so now instead of 25k+ from the emoloyer going straight into her 401k tax free. she's going to get a bonus at the end of year.
Going to need to get a little creative.
That's a big tax hit. You should definitely meet with a professional, buy an hour if his time.
Brownslave688
You want a toe? I can get you a toe.
The problem is it may be an annual thing. I'll def let someone do it year one.
Brownslave688
You want a toe? I can get you a toe.
My good friend is our CPA. she said one of their CPAs is a certified financial planner. Probably gonna meet with him.
Maybe he will have some other good ideas.
Maybe tax free municipal bonds?
Brownslave688
You want a toe? I can get you a toe.
Yes but we make too much to be eligible for the initial tax break of a traditional IRA.
So paying taxes is a moot point for us.
UpstateNYUPSer(Ret)
Well-Known Member
Just because you make too much for the tax credit does not mean that you would not get taxed on the conversion.
Brownslave688
You want a toe? I can get you a toe.
Yeah I'm excited to meet with him.
By no means am I complaining but money brings on its own set of complications.
