IRA conversion

[Bigdawg]

I have not contributed to an IRA for the past few years because our AGI is over 181K. I can participate in a traditional but I get no tax relief. If I participate now on a traditional and then later (when my AGI drops) I want to convert to ROTH, what would my taxes be? Zero since this money was already after tax? I am maxing my 401K. My company does not offer a ROTH 401K.

 

[pb4uski]

As I understand it, if you have a mix of deductible and non-deductible contributions then if you do a Roth conversion the distribution would reflect that mix and a portion of the conversion amount would not be taxable. IIRC this is measured across all your IRAs so you can't sidestep it by having separate deductible and non-deductible IRAs and only converting the non-deductible IRA account.

 

[Big_Hitter]

can't you set up a backdoor roth and put in 13K a year (assumed married) even with your agi and other qualified plan benefits?

 

[Bigdawg]

Back door ROTH it is. I found that thread and that looks like the way to go. I have a small traditional from years ago. Thanks