ROTH – Definitive Guide to the Back Door Roth
Looking for recent commentary on Back Door Roth IRAs.
Nice piece from August 2015. has this been updated?
Clients phased out. Want to fund NDIRA then convert. Has other IRA funds. Need reminders on the Pro-rata rules.
All of it. Anything I can reference? Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2020-10-01 17:11
The procedures have not changed, however the IRS and Congress have since officially recognized the legality of the back door Roth method. Pro rata rules and Form 8606 rules remain the same and all IRA balances at the end of the conversion year must be entered on Form 8606 line 6 for determination of the taxable/non taxable amount of the conversions done that year. If pre tax balances of any existing IRA accounts can be rolled into an accepting employer plan (typically client’s current employer only will accept) before year end, any conversions done this year will be non taxable. Otherwise, pro rating will apply.