BackDoor Roth
My client would like to do a back door Roth but has a SIMPLE IRA through his employer. I assume we have to include the balance in his SIMPLE IRA which would prevent the back door strategy from being a tax-free conversion? All of his contributions in the SIMPLE IRA are traditional contributions.
Permalink Submitted by Alan - IRA critic on Wed, 2025-04-02 12:51
Correct. The balance of all owned SEP, SIMPLE, and traditional IRAs must be added to line 6 of Form 8606.