Backdoor Roth when Spouse has an existing SEP IRA
Hello,
I have a client who recently got married. Husband has a SEP from the time he had a business.
Wife inquired about doing a backdoor roth ira.
They are married and filing joint return. Would the pro-rata rule apply in this situation as well if the only the wife opens a backdoor roth?
Permalink Submitted by Alan - IRA critic on Tue, 2024-02-20 19:33
No, since any IRAs held only affect the back door Roth (Form 8606) for the spouse with the IRA. If wife has no other TIRA balance, her back door Roth conversion should be tax free.