Davaldez21
Dryer sheet wannabe
I wanted to educate myself on how a backdoor IRA affects an existing Traditional IRA.
If one has money in a traditional IRA and then some separate money in a non deductible IRA (already taxed based on income limits since not qualifying for TIRA) which one wants to convert to Roth, I read the non deductible IRA may be taxed again based on a ratio of 'already taxed contributions to never been taxed contributions'.
Again this is said to only affected backdoor roths if you have existing TIRA balances.
link: 6 IRA Mistakes to Avoid
How true is this? I mean couldn't I just convert the nondeductible IRA to Roth and leave the rest of the Traditional IRA intact for later?
Thanks!
If one has money in a traditional IRA and then some separate money in a non deductible IRA (already taxed based on income limits since not qualifying for TIRA) which one wants to convert to Roth, I read the non deductible IRA may be taxed again based on a ratio of 'already taxed contributions to never been taxed contributions'.
Again this is said to only affected backdoor roths if you have existing TIRA balances.
link: 6 IRA Mistakes to Avoid
How true is this? I mean couldn't I just convert the nondeductible IRA to Roth and leave the rest of the Traditional IRA intact for later?
Thanks!
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