Back Door Roth
Income is above deduction limits.
Individual has traditional IRA and 401k in 2016.
Individual moved traditional IRA to 401k in 2017.
Individual currently does not have any IRAs outside of the 401k.
Since the IRA will have a zero balance at the end of 2017 – Can they make a 2016 IRA contribution in 2017 before tax filing deadline and a 2017 contribution in 2017, then convert both in 2017 using the back door Roth strategy? The concern I have is the IRA having a balance at the end of 2016 and making a 2016 contribution with the conversion happening in 2017.
Permalink Submitted by Alan - IRA critic on Fri, 2017-03-03 18:56
This is not a problem because the conversion is in 2017 and will be reported on a 2017 8606. Individual may have been able to make a regular Roth contribution because the Roth IRA MAGI limit is considerably higher than the TIRA deduction limit. Or perhaps you did not mean to refer to the deduction limit.