Back door Roth contribution

Submitted by Mike LaRose on Wed, 2014-03-26 23:22

I have a client that is wanting to make a Roth contribution. The problem(s) are that she makes to much income and currently has an IRA. To get around the pro rata rule, she is thinking of moving her IRA to her 401k. My question is, since we are talking about tax year 2013, is that possible to move the IRA to the 401k to avoid the pro rata rule?

Thanks,

Mike



Submitted by Alan - IRA critic on Thu, 2014-03-27 03:02

Yes. The contribution can be for 2013 and also for 2014, but the conversion will be reportable in 2014. Therefore, she has until the end of 2014 to move the pre tax IRA balance into her 401k to make the conversion tax free.

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