Non-deductible IRA to Back Door Roth | Ed Slott and Company, LLC

Non-deductible IRA to Back Door Roth

If a person with very high income, who has no IRAs at all of any type, wishes to ultimately have a Roth IRA for 2018 via a non-deductible TIRA-traditional IRA Roth, must this be done by the end of 2018 or would the person have until 4/15/19 to accomplish this for 2018?

The ND TIRA contribution for 2018 can be done up till 4/15/19.  That would be reported on a 2018 Form 8606. The conversion obviously would be in 2019 and reported on a 2019 8606.  Contributions are always for a specific year, but the conversion to complete the back door Roth process can be done anytime, but to eliminate gains on the contribution that would be taxed upon conversion, it is recommended to convert immediately after making the contribution. 

 

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