I have a Roth IRA that I made and a 401(k) account through my employer.

I realized that I will be above the income limit to contribute to Roth IRA and saw that I could do a backdoor by putting money into a Traditional IRA and then converting it to Roth IRA.

Is it allowed to open a Traditional IRA if I have a 401(k) and a Roth IRA?

2 Answers 2


Having existing accounts would never disqualify you from opening another account type. The ability to start the new account is based on other factors. In your case it's simply a question of whether you have taxable compensation (money earned by the sweat of thy brow) which you apparently do since you have a 401(k), and have not exceeded the annual deposit limit. Thus, I expect that the first caveat is not an issue, and since you are aware you cannot deposit to the Roth this year, no deposits were made yet. In which case, you are able to make the deposit to the (new) IRA, non-deductible, wait for the money to clear, and convert it to your Roth IRA.

For those reading this. It appears that OP (original question poster) has not yet opened any Traditional IRA. If he had one already, the transfer of money from the Traditional IRA to a Roth IRA would likely trigger a tax. A prorated portion of the (previously) tax-deducted deposits to that Traditional IRA, along with the growth therefrom, would be considered to be part of the money transferred to the Roth IRA, and that prorated part would be taxable income to the IRA owner. Note that, in accordance with tax law, the IRS considers all Traditional IRA accounts (regardless of who the custodians are) to be part of the one single Traditional IRA that the owner has, and so, transfer of the money from just the Traditional IRA account just opened to the Roth IRA doesn't help in the least: the money is deemed to be from the owner's (single) Traditional IRA and is prorated and taxed as described.

  • Thanks! I understand that I can make a new Traditional IRA and contribute to it. Another question I have is that I'll be putting money in it using my post-tax income. So, will it be subject to taxes again on conversion?? I don't want to be taxed twice...
    – Raj
    Nov 22, 2020 at 19:19
  • I trust there is no existing traditional IRA. In that case the converted amount has no tax due since the amount you converted is within the traditional IRA as post tax deposit. This is the process of the back door IRA. Nov 22, 2020 at 20:20
  • I edited your answer instead of writing my own. Please roll back the edits if what I changed is not what you wished to say (or introduced errors into your answer). Nov 22, 2020 at 22:31
  • A bit more eloquent than I. So, thank you. Nov 22, 2020 at 22:55

Yes, anyone with earned income can make nondeductible contributions to a traditional IRA.

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