Rollover of deductible portion of IRA to 401(k) then convert nondeductible to Roth
I just wanted to double check the timing of the steps for any recent changes. I rolled the deductible portion of an IRA to a 401(k) 10/31/2016 then converted the nondeductible to a Roth 11/30/2016. On 4/16/2017 we rolled the 401(k) into the IRA. All went well. IRS even asked for 1099s, etc. and approved all that was done.
Still, I wanted to double check if we can still do the deductible rollover (1st) and Roth conversion (2nd) all in the same year.
We know that the laws could change eliminating this.
Many, many thanks as always.
Mary!
Permalink Submitted by Alan - IRA critic on Thu, 2022-02-10 19:53
The law hasn’t changed yet for back door Roth IRAs and if it does, it will probably not be retroactive in this respect. However, you now have a pre tax IRA balance again, and therefore if you make a non deductible contribution now, the conversion will be mostly taxable unless you roll the pre tax IRA balance back into an accepting employer plan again before year end.