Reply to roth IRA conversion/tax question

Forum Index » Money and Finances

Reply to "roth IRA conversion/tax question"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]What do you mean the IRS is saying you over payed? There are no limits on Roth conversions, you just need to pay taxes on the amounts over the contribution limit (which forms your after tax basis). Did you log the $6500.94 as the contribution on your 8606?  $6500 should be your contribution, 6500.94 should be the conversion amounts, and the amount over $6500 forms will require taxes paid in the amount of 94 cents.

I admit the 8606 is confusing but that is how it should play out. [/quote]

Agree something does not make sense with OP. A Backdoor Roth contribution literally takes about 10 minutes to do if you know what you’re doing. If you convert it right away, you won’t have any earnings. And if you wait, yes you may have earned a few cents/dollars. So you just pay tax on the few dollars when you convert…not a big deal. Remember a few pennies is not going to matter because you round to the nearest dollar.

[/quote]

I converted it literally the next day.  It was $.94[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics