Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Site Notices
Posted: 12/2/2014 3:57:58 PM EDT
So I make around 200k and it's time to start investing.  I just learned you could put 11k in an IRA and then convert to Roth.  Can you then refund your IRA to 11?  Yes I am going to ask my accountant.  Any help would be appreciated thanks.
Link Posted: 12/2/2014 7:56:09 PM EDT
[#1]
I believe the contribution limits are the total, maximum amount that you can contribute to any type of IRA in one tax year.  So, you couldn't contribute any more money to a traditional IRA after maxing it out and converting it to a Roth IRA.

Also, the limits are currently $5,500 ($6,500 if you're over the age of 50), so I'm not sure where the $11k number came from, unless I misunderstood your post.

What you're referring to is called a "backdoor Roth IRA" if you want to do some research.
Link Posted: 12/2/2014 11:27:40 PM EDT
[#2]
Thanks.  I got the 11k from married filing jointly.  I will look it up under that title now.
Link Posted: 12/2/2014 11:50:58 PM EDT
[#3]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Thanks.  I got the 11k from married filing jointly.  I will look it up under that title now.
View Quote


No problem.  

I mistakenly assumed the $11k was referring to contributing twice.  
Link Posted: 12/4/2014 3:07:49 PM EDT
[#4]
You can contribute $5,500 this year total to IRA accounts (traditional or Roth).  It sounds like you will make too much money to be eligible to contribute to a Roth IRA (directly).  What you can do is make a non-deductible $5,500 contribution to a Traditional IRA, then immediately convert/transfer it to a Roth, thus protecting any future earnings from taxes.  Your spouse can do the same thing.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top