Back Door Roth/Step Transaction
What is the take on the BD Roth and the IRS rulings of Step transactions (Jeff Levine was ok with it as of 2015). Has there been any update from the Ed Slott team on this? At that time there was no court case attacking the BD Roth. I have personally been doing the BD Roth for a while and for clients for years. Just want to make sure we aren’t flying to close to the sun with an immediate conversion after the ND contribution. Appreciate the guidance and help as always!
Permalink Submitted by Alan - IRA critic on Tue, 2021-04-13 18:58
You can take the potential step transaction issue for back door Roths off your radar. Buried in the text of the 2017 Tax Cuts and Jobs Act (TCJA) lies a statement that Congress approved, blessing the so-called “back-door” Roth IRA: “Although an individual with AGI exceeding certain limits is not permitted to make a contribution directly to a Roth IRA, the individual can make a contribution to a traditional IRA and convert the traditional IRA to a Roth IRA.”
Permalink Submitted by Ryan Smith on Tue, 2021-04-13 19:40
wonderful, thanks!