- Joined
- Nov 7, 2014
- Messages
- 111
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hey guys
need some clarification on backdoor ira, hopefully you guys can clarify my confusion.
I have approx 50k each in traditional and roth IRA (previous rolled over 401k to roth account ) invested in Target Retirement funds.
and this year i want to do back door roth ira.
my question and confusions:
1. I believe i have to roll over traditional IRA account to my current 401k account, making it balance zero @ traditional ira account, if i want to do back door roth ira???rt? yes or no? do i have to pay any taxes on this roll over amount? and how much taxes if i have to on 50k?
2. so now once I am done with step 1 , I make contribution of $5500 to my traditional ira and transfer that to roth ira in few days. rt? Do I have to pay any taxes on this transfer?
need some clarification on backdoor ira, hopefully you guys can clarify my confusion.
I have approx 50k each in traditional and roth IRA (previous rolled over 401k to roth account ) invested in Target Retirement funds.
and this year i want to do back door roth ira.
my question and confusions:
1. I believe i have to roll over traditional IRA account to my current 401k account, making it balance zero @ traditional ira account, if i want to do back door roth ira???rt? yes or no? do i have to pay any taxes on this roll over amount? and how much taxes if i have to on 50k?
2. so now once I am done with step 1 , I make contribution of $5500 to my traditional ira and transfer that to roth ira in few days. rt? Do I have to pay any taxes on this transfer?