Reverse Backdoor Roth IRA

Submitted by Ding Dong on Mon, 2023-05-01 02:56

Hi
I made a non-deductible contribution to my traditonal IRA (the only brand new traditional IRA account I have/opened with no prior balance) before April 15th 2023 for 2022 contribution ($6000) and immediately converted it to Roth (in the next day or two).

I do not wish to go ahead with this contribution /conversion. Is there a way for me to remove this non-deductible amount contributed and converted back to my checking account with minimal complications? If yes, what steps must I follow and in what sequence?

I’m yet to file my 2022 IRS tax returns, so I have not submitted any forms citing this transaction to the IRS.

Thanks



Submitted by William Tuttle on Mon, 2023-05-01 12:45

  • The TCJA eliminated recharacterization of Roth conversions five years ago.
  • The fact that this non-deductible traditional IRA contribution was made to a new traditional IRA account is irrelevant.
  • Any pre-tax balances in all traditional SEP and SIMPLE IRA accounts on 12/31/22 will cause prorata taxation of any 2022 Roth conversions.

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