My daughter, soon to be dentist, had a financial company come and give a seminar. She called me said, I can't put money in a Roth if my income is high? I looked up the limits and told her, then said but there is something called a back door Roth.
Then I was confused. She can put money into a non-deductible IRA, non deductible because her income is over the limit. Then she can do a Roth Conversion. But what about the taxes? Since she paid taxes on the IRA contribution, I don't think she would owe in tax on the Roth Conversion.
Do I have that correct? Do you do both of these in the same year?
Then I was confused. She can put money into a non-deductible IRA, non deductible because her income is over the limit. Then she can do a Roth Conversion. But what about the taxes? Since she paid taxes on the IRA contribution, I don't think she would owe in tax on the Roth Conversion.
Do I have that correct? Do you do both of these in the same year?