How does one annually convert each previous year's Traditional IRA contributions to Roth IRA?
My income is too high to contribute to a Roth IRA, so my only choice is a Traditional IRA.
Is there some way I can in 2019 convert my 2018 Traditional IRA contributions into a Roth IRA? And then do that each year thereafter with the previous year's contributions?
(1)1 Comments
Sorted by latest first Latest Oldest Best
Yes, this is a common and often savvy move, sometimes known as a backdoor Roth IRA. There are many explanations.
You need to contact the IRA custodian (mutual fund company, bank, or brokerage) and request a conversion. You will owe prorated taxes on any traditional IRA contributions that were deductible, and on any gains to date.
The conversion is particularly beneficial if you don't qualify for direct Roth or deductible traditional contributions, since anyone with income can make nondeductible traditional contributions, and there is no income limit on conversions.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.