BackDoor Roth

My client would like to do a back door Roth but has a SIMPLE IRA through his employer. I assume we have to include the balance in his SIMPLE IRA which would prevent the back door strategy from being a tax-free conversion? All of his contributions in the SIMPLE IRA are traditional contributions.

 

 



Correct. The balance of all owned SEP, SIMPLE, and traditional IRAs must be added to line 6 of Form 8606.

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