I opened an IRA and completed the backdoor Roth conversion a few years ago. I read something today that's making me think I'm doing my annual $7500 contributions wrong. We do it as a lump sum every fall and I'm adding that amount directly into the Roth IRA account. Am I supposed to be putting it into the Traditional account and then transferring it over instead? The traditional IRA account is still open but just with a zero balance.
Backdoor Roth annual contribution question
byu/mr_mother ininvesting
Posted by mr_mother
3 Comments
Yes, you’re supposed to transfer it to a traditional first. Then convert it by transferring from the traditional to the Roth. It is an important distinction, it is taxed going into the traditional, and then not taxed going into the Roth.
Read this for everything you need to know about Backdoor Roth and Form 8606:
* https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/
Read this list of common screwups and solutions with respect to backdoor Roth. Beware of Screwup #5.
* https://www.whitecoatinvestor.com/fix-backdoor-roth-ira-screw-ups/
No I don’t think so. I deposit my cash directly into my Roth