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Subject:  Backdoor Roth IRA - Anything need to know? Date:  2/1/2013  9:26 AM
Author:  Jennlee222 Number:  71317 of 75340

Hi,

I've always maxed out my Roth IRA contributions in the past and I would like to continue.

However this summer I plan on getting married, and between the two of us, my husband and I expect to exceed the Roth contribution limits. I know, what a bummer, right?

My fiance exceeded the limits last year for the first time and because he hadn't known about the limits he had done his Roth contribution but then had to pull it out. So he had no Roth last year.

I still plan on maxing my 401K and would like to max my Roth also. I have read a little bit about doing a backdoor Roth, which would entail me opening a traditional IRA account, funding it, and then immediately converting it to a Roth.

I do not currently have any traditional IRAs, so as I understand it, the conversion is simple.

Any things I should be concerned about as far as doing this? Do I need to worry at all about timing? I'm assuming if I fund the traditional account I don't actually have to buy stocks or mutual funds before I convert it, right? I'd be using eTrade probably, since that is where my Roth account is. It looks like I can open a traditional IRA, and I also see info on converting to Roth, so I'm thinking it shouldn't be a problem.

Does it make anything extra complicated with taxes or anything?

Thanks,

Jennlee
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