Back door Roth conversion
I have never done this before and I have a prospect who has 53k in ROth funds, 70k in Non-Q funds this is all at Ed Jones and we are planning on doing a Roth IRA annuity and she wants to have it be for 75k of Roth IRA funds. How do we do this? what is the process in getting the additional 22k of Non-q funds to be a Roth?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2022-12-02 18:17
NQ money cannot be contributed to an IRA, therefore she is limited to the 53k of Roth IRA money she has now. If she has a traditional IRA she could convert 22k of it to the Roth IRA prior to purchasing a Roth IRA Annuity. Of course, there are several varieties of annuities with various fringe benefits. Otherwise, she would need to maintain two accounts, one for the Roth IRA invested she chooses, and the other a NQ account, also invested as she chooses. If she stays at EJ, she will be paying high fees, and annuities in any account add insurance related fees as well as being costly to terminate.