Questions tagged [roth-conversion]
A Roth conversion refers to taking all or part of the balance of an existing traditional IRA and moving it into a Roth IRA.
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How to correct a Roth conversion pro-rata rule mistake on form 8606?
I have an after-tax IRA and pre-tax IRA. In 2022 I converted $30,000 from the pre-tax IRA to a Roth IRA. I wasn't aware of the pro-rata rule. According to pro-rata rule, I was supposed to convert $4,...
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Converting some Pre-Tax 401k Contributions to Roth Contributions
Is it possible to convert some Pre-Tax 401k contributions to Roth contributions each year? Since I would have to pay taxes on the amount converted I wouldn't be able to do it all at one time.
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Roth Conversion using up foreign tax credits before and after expatriation
I'd like to sense-check the following scenario, to make sure I don't do something phenomenally stupid and irreversible. I'm hoping that I've correctly understood what I've read on this site & ...
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What tax form is used for Roth conversion within a 401(K)? (Not IRA)
I am not asking about a conversion from 401K to Roth IRA. (That'd be Form 8606 by the way).
My employer plan allows both traditional and Roth 401(K). Really. They also allow Roth conversions from ...
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Question about taxes on Roth backdoor IRA
Last year say I made $100,000.00 in income through my job (that is the amount on my w2 in box 1). I have a 401k through my job, so I use Roth backdoor IRA, so last year I moved 6000 into a traditional ...
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Converted Traditional IRA to Roth IRA (backdoor) with money market funds, is that a mistake?
During last year (2022), I wanted to do a typical backdoor Roth IRA. I made a full $6,000 post-tax contribution to my Traditional IRA, waited for the transfer to settle, and then immediately converted ...
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Does it make sense to get a 529 plan to convert to Roth IRA in the future?
Given the recent changes on rolling over a 529 plan, could one start a 529 plan and then convert it to a Roth 15 years down the line if they don't use it for any schooling? I haven't considered 529 ...
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Possible to open multiple IRA accounts from the same institution?
Let's say I already have a traditional IRA account with a brokerage, and I've used it for tax deduction last year. Now, I want to use the backdoor Roth conversion method. From what I have ready, I ...
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Roth conversion or AOTC
I'm trying to decide whether to do a Roth conversion or take the American Opportunity Tax Credit (AOTC) for my daughter going to college this year. The Roth conversion would push me over the income ...
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Filing a missing prior year 8606 & Effect on future tax return
I am realizing I messed up a previous backdoor roth - this is what my timeline looks like:
On 3/1/2020 Deposit 6k to Traditional IRA For Tax Year 2019
On 3/30/2020 Convert 6k to Roth IRA
On 12/31/...
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How can I undo traditional IRA contribution and contribute to Roth IRA instead? [duplicate]
I made a contribution to my traditional IRA account for 2021. Later I learned from my CPA that since we had already reached the deduction limit of 125k for a couple, we won't be getting any tax break ...
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Is there a downside to doing multiple Roth IRA conversions?
I have been doing both backdoor Roth IRA conversion and also the mega backdoor Roth IRA conversion.
There's some ambiguity about whether congress is going to disallow these.
Every paycheck I ...
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How do I determine the cost Basis for IRA funds converted to Roth?
I converted $100,000 from rollover ira to Roth IRA in 2021.
What is the basis for this converted amount? I entered zero. I want to make sure I am doing it right.
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Did I lose Backdoor IRA amount by moving into the wrong account?
I live in California. I have 3 accounts - Trading, Traditional IRA and Roth IRA.
I moved $6000 (IRA limit) from my Trading account to Traditional IRA, and then I intended to move this amount to Roth ...
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Can I have more than one IRA if I utilize the backdoor Roth conversion option?
A few years ago I began doing backdoor Roth contributions. Up until that point I had done traditional Roth contributions only. I contacted my IRA account holder Vanguard and asked some questions about ...
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What can be withdrawn from a Roth IRA without penalty before 59 1/2?
I know that contributions (dollar amount equal to what was directly contributed to the Roth IRA) can be withdrawn tax-free and penalty-free at any time, and that earnings on those contributions will ...
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Roth Conversion over ACA Cliff
Since the ACA Cliff is eliminated for 2021 (& 2022), it appears to be a good time to do an extra large Roth Conversion. Assuming the individual is already close to the ACA cliff (and not on ...
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Best Option to Fix Roth IRA Excess Contribution For 2021
I have maxed out my Roth IRA contribution this year (2021) not knowing there was a limit due to my income. To put it simply, I only qualify for $5k and I put in $6K. The IRA has now grown to about $8k ...
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Backdoor Roth with contributions from previous years?
Say an individual maxed out their IRA contribution for 10 years running, and each year was not able to take a deduction on their IRA contributions because their income was above the limit.
Could that ...
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Recharacterized 2 years of Roth IRA Contributions - how much to invest through Backdoor?
I have mistakenly been contributing to a Roth IRA for 2020 and 2021 while my adjusted gross income (AGI) exceeded the 120k limit.
Therefore, I called Vanguard to recharacterize my contributions to my ...
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Automated/Least Painful Backdoor Roth IRA + Nuanced Questions
As quick background, I'm an expat that has been living abroad for the past 8+ years, and have been and continue to be ineligible to contribute to an old Roth 401k that I still possess with my previous ...
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Can you fund your Traditional IRA after rolling it over to Roth IRA?
The Traditional IRA has a $6,000 limit per year. If I
Step1: Transfer 6k to Traditional IRA
Step2: Roll over entire 6k to Roth IRA
Can I transfer additional 6k to Traditional IRA because Traditional ...
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How much of my 401(k) should I roll over to a Roth IRA to pay the least taxes?
I am 61 yrs old want and I want to start rolling over my 401K to a Roth-IRA account. How can I figure out how much money I should roll over in order to pay the least taxes? Through a google search, I ...
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2020 Backdoor Roth IRA Conversion in 2021 - Concern/Questions
In 2019, I did a backdoor Roth IRA conversion that went off without any problems (put $6000 into traditional IRA, converted to Roth IRA). In 2020, I was looking to do the same, but I hit a snag.
I ...
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Can IRS construe a Roth conversion to be a wash sale?
Should I do Roth IRA conversions after a market crash?
I have too much money in my traditional IRA and not enough money in my Roth IRA. Both accounts use VTSAX. I have no intention of touching it any ...
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Tax on backdoor conversion - 1099R
In 2020, I deposited $7,000 (after-tax) in my Traditional IRA (Vanguard) account and then converted them into Roth IRA. One mistake I made was that for my age, the limit for backdoor conversion was $6,...
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Backdoor Roth vs Mega backdoor Roth contributions
I heard about Backdoor Roth IRA, and Mega backdoor Roth contributions. Are they one and the same? Or are they different?
I ask because I know some folks who work for a big tech company in the US that ...
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Is a backdoor ROTH IRA contribution still worth it if I have pre-tax IRAs that I can't rollover to a 401k yet?
Starting this year, I can no longer contribute to my ROTH IRA. I have three other IRAs:
A rollover IRA (pre-tax), opened in 2020 when I rolled over an old 401k.
A SIMPLE IRA (pre-tax), opened in 2020 ...
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Is "Conversion" a technical term in a Backdoor ROTH Conversion?
I'm doing a backdoor ROTH for the first time with Fidelity. My understanding is the process is simple:
Create or have a Traditional IRA
Create or have a ROTH IRA
Put post-tax money into Traditional ...
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Can I legally play this shell-game with the IRS by using “Recharacterization” or “Conversion”, depending on markets?
Let's assume you contribute a certain deductible amount to your IRA on Jan/2, and invest it there. You really want the money in your IRA Roth at the end of the year, but you try to pick the best ...
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IRA to IRA Roth "Recharacterization" vs "Conversion", is there a difference in result?
Let's assume this simplified case:
At the beginning of 2020, there is no money in my IRA. I contribute the maximum amount allowed (for me 7k$, because I'm old) from after-tax money, and next day ...
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Paying taxes on a converted old retirement account to a Roth IRA from a 401K loan from current employer?
I have an old 403B plan, I am 47 years old and would like to convert part of it to a Roth. I would like to convert $100k to the Roth, but will then have to pay taxes on the conversion. Lets just say ...
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Converting a contribution to a Roth IRA >60 days after contributing?
I deposited $6k in 2019, and $6k in 2020, but converted $4k to Roth in 2019, and $8k to Roth in 2020. Will this differ any benefit? Will I be taxed differently?
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Can a Roth 401(k) be transferred somehow to a Roth IRA if younger than 59.5-year-old and not leaving one's job?
I understand that:
A Roth 401(k) may be rolled over to a Roth IRA if older than 59.5-year-old or if leaving one's job.
It is possible to do in-service distributions from an after-tax 401(k) to a Roth ...
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How can I remedy a Roth IRA contribution which isn't allowed?
I have always contributed the max to my Roth IRA on the first opportunity in the new year, as I did on January 2, 2020.
I ended up getting a major raise and bonus in mid-2020 that pushed my income way ...
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Backdoor Roth IRA conversion while owning SEP-IRA as well
I have a SEP-IRA from my consulting years, many years ago (I haven't contributed to it in years but it does have a balance).
I wanted to setup a backdoor Roth IRA conversion by creating Traditional ...
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How do I figure Roth IRA withdrawals after converting multiple times?
I am converting assets from a traditional IRA to a Roth IRA over multiple years. I know that I cannot take any withdrawals from the Roth before 5 years from the start of the year when I first ...
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Can I open a Traditional IRA if I have a 401(k) and a Roth IRA?
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 ...
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Roth conversions that include non-deductible IRA contributions
Spouse has a single traditional IRA account into which was made a non-deductible contribution one year (and the appropriate form filed with our taxes). We understand the pro rata rule for partial ...
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How to pay tax on IRA to Roth rollover
I recently changed employers, and merged my old retirement account with a Roth account I have with an independent company. A little less than half the contributions were pre-tax, and I understand I ...
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Does 'Taxable Income' from a Roth conversion count as income source for IRA contribution?
Let's assume Jane is retired, and has no income from employment. She still would like to contribute to her IRA [or Roth IRA], but this is not allowed from capital gains or dividend income.
Now Jane ...
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FICA on Traditional IRA to Roth Coversion
I am aware of the fact that we have to pay taxes on the amount we convert from Traditional IRA to Roth IRA. However, I would like to find out if we have to pay FICA taxes on the conversion.
General ...
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Where can I transfer rollover IRA funds to without it becoming income?
I'd like to move untaxed investment money to a new institution. Originally, the money was held in a 401k, then moved to a Rollover IRA.
My new bank has both "Traditional IRA" and "Roth IRA" products ...
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Taxation of traditional to Roth IRA conversion for non-resident
I left the USA in 2019, am now in India and so am a non-resident for US tax purposes for 2020, and want to convert part of my traditional IRA to Roth IRA. What are the tax implications of this ...
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Income Tax filing of Roth Info
I may have mis added the amount of 401 K I converted to a Roth account on my taxes. Will the IRS catch that? What will be the penalty?
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Converted $1 more than the IRS limit when doing backdoor Roth conversion
For doing backdoor Roth conversion I deposited $6000 into my traditional IRA and then converted it a few days later to a Roth IRA account. The money unfortunately earned a little bit of growth when it ...
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Roth conversion: why is cost basis the basis of original SEP-IRA investment?
I just converted some money in a SEP-IRA to a Roth IRA. The value of the fund that money was invested in was down about 10% from when I initially invested in the SEP-IRA. Once the transaction was ...
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Can I take a tax loss on Roth IRA conversion?
Because we were over the income limit, my wife and I contributed post-tax dollars to our regular IRAs over the past five years. We would like to do a backdoor Roth IRA conversion while the market is ...
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How to file taxes for a backdoor Roth and 401(k) roll-in
I am planning to backdoor $6000 into my Roth IRA for 2019, which currently has nothing in it.
I have $2500 in a traditional rollover IRA. I was going to put it into the Roth, but due to the ordering ...
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How should I backdoor my Roth IRA?
I am single and have no dependents, am in my late 20s, and I made an income in 2019 that lies somewhere inside the phase-out section of direct contributions to a Roth IRA. I do not think I have any ...
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