Roth Contributions

Had a CPA suggest that a client, who is unable to make a Roth Contribution due to income limits, make a non-deductible regular IRA contribution in November and then convert this IRA contribution into a Roth IRA in December to “get around” the income limits on contributions to Roth IRAs. This sounds questionable to me..any thoughts?



Yes, that is a legal method for contributing (converting) to a ROTH IRA. Also referred to as a “Back Door Roth IRA Contribution”.
There is no limit on the amount that can converted to a ROTH IRA.

See Alan’s answer in this link, just a few days ago: http://www.irahelp.com/forum/viewtopic.php?f=1&t=8389



Add new comment

Log in or register to post comments