Update backdoor Roth with 401(k_
In 2016 we did the above and all went well. The IRS asked for supporting documents but approved all.
I just wanted to check that the steps used in 2016 are still valid in 2021. In October 2016 we rolled the client’s taxable IRA portion into his 401(k). In November 2016 we converted his nondeductible IRA contributions to a Roth. In 2022 we rolled his 401(k) back to his IRA. He paid no income taxes on the Roth conversion.
Is it still ok to do a nontaxable Roth conversion of nondeductible contributions and rollover of taxable to 401(k)
in same year as long as the 401(k) rollover is done 1st?
Thanks …. Mary!
Permalink Submitted by Alan - IRA critic on Thu, 2021-09-30 18:46
Yes, it is still OK. The rollover of pre tax TIRA money to the 401k first is not required but is recommended in case the 401k refused to accept the rollover or something else went wrong. If client is going to complete this process again, better do so prior to year end since pending legislation would eliminate the conversion of non deductible TIRA contributions starting in 2022.