Backdoor Roth
We have a client who is over the income level to have a Roth. How does the backdoor Roth work? If he puts money into a Traditional non-deductible IRA could he still roll it over to a Roth even though he is over the income level?
We have a client who is over the income level to have a Roth. How does the backdoor Roth work? If he puts money into a Traditional non-deductible IRA could he still roll it over to a Roth even though he is over the income level?
Permalink Submitted by Alan - IRA critic on Sat, 2018-02-03 00:13
Yes, but the pitfall is that if he has any other non Roth balance, eg a rollover IRA, the conversion to Roth will be mostly taxable.