UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: Jennlee222 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75838  
Subject: Backdoor Roth IRA - Anything need to know? Date: 2/1/2013 9:26 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement