Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
OK,I'm going to try asking this again because I still can't quite find the answer online, perhaps because it's so simple.

I am now old enough for an IRA contribution of $7,000 per year with catch-up amount in 2019.

My income is too high to allow for a deductible contribution to a Traditional IRA or any contribution directly to a Roth IRA.

I do not currently have a traditional IRA(I do have an old Roth and an employer 401K).

If I put $7,000 after taxes (not deductible for me) in a Traditional IRA and within a week or so immediately roll it over into a new Roth, with minimal or no gain in the account during that week, it seems like there would be negligible tax implications (I am in a high bracket and likely to be there even in retirement. I know I will have to wait five years to take a distribution from this Roth without penalty).

Am I missing something? Pitfalls?
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.