Back Door Roth
My client’s AGI is about $225K, and he is a participant in his company’s 401(k). His wife in not an income earner. They could fund a spousal, non-deductible traditional IRA and convert it couldn’t they?
My client’s AGI is about $225K, and he is a participant in his company’s 401(k). His wife in not an income earner. They could fund a spousal, non-deductible traditional IRA and convert it couldn’t they?
Permalink Submitted by Alan - IRA critic on Mon, 2015-09-21 22:42
They could both make a non deductible TIRA contribution, since even the non working spouse will not qualify for the deduction if modified AGI exceeds 193k. They can also each convert that contribution to a Roth IRA, but the conversion will only be tax free if that particular spouse has no pre tax balance in a non Roth IRA.