Another Roth Conversion Question
If a client converts his only IRA ($12k) to Roth in 2019, can he still do a backdoor Roth? Are there any limits on how many conversions you can do in a year, for example? Also, I’m assuming he would only owe taxes on the $12k, as long as he notes the NQ contribution on form 8606. Is the correct? Thanks
Permalink Submitted by Alan - IRA critic on Sat, 2019-02-02 00:44
There is no limit on the number of conversions. You are correct that a total conversion of 18,000 of which say 12,000 is pre tax will result in taxable income of 12,000 on Form 8606, regardless of the order in which the two conversions are done or when the non deductible contribution is made. Am assuming that there is no balance left in the TIRA at year end.