New Back Door to Existing Roth IRA
Taxpayer is 65.
He opened a Roth IRA at 45 by contribution.
Can he now open a brand-new non-deductible TIRA and make contributions to that account AND THEN move (convert) funds from this new TIRA to his existing Roth IRA?
Or does he have to open a new Roth IRA for this purpose?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2022-04-21 14:09
A new Roth account is optional. He can convert into the current Roth account, and because his Roth IRA is qualified, he will have no holding period for the conversion (even if the conversion is partly taxable). His entire Roth IRA could be distributed tax and penalty free. Of course, all his TIRA, SEP, or SIMPLE IRA accounts must be included in the Form 8606 calculation to determine how much of his conversion is taxable. The conversion is non taxable only if this is his first and only non Roth IRA.