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Grevious47 t1_j2fujkv wrote

Reply to comment by cwazycupcakes13 in Did I miss the window for a 2023 backdoor Roth contribution (without triggering the pro-rata rule)? by echo-engee

Wait. So I also have money in a rollover tIRA that I was going to rollover into a 401k before doing a backdoor Roth to avoid pro-rata. I thought I has until April 2023 to do both steps. Was that wrong and I only have until 12/31/2022 to pull money out of the rollover IRA to avoid pro-rata if I do a backdoor Roth for 2022 say march of 2023? If so I guess Im not doing a backdoor Roth in 2022 then damn.

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cwazycupcakes13 t1_j2fw9b7 wrote

You have until April 18, 2023 to make IRA contributions for the 2022 tax year. For backdoor Roth, it will be a non deductible Trad IRA contribution and you will want to do the conversion right away. Let’s assume you are going to do the contribution and conversion in 2023 since it is now impossible to do it in 2022. As long as you have completed the rollover of your pre tax Traditional IRA money to your 401k by 12/31/2023, you are all set and will not owe additional taxes on your already taxed 2022 Traditional IRA contribution. That is why you (and I) are doing this type of rollover, to avoid pro rata taxes.

For your 2023 contribution, you have until the April 2024 deadline to make your 2023 contribution (and presumably the conversion, if you are going to do another backdoor Roth).

Edit: After rereading, my second paragraph made it seem like there is a deadline to do the Roth conversion. There is not. But if you allow money to sit in the Traditional IRA account instead of converting it to Roth, you will owe taxes on the earnings when you do the conversion.

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Grevious47 t1_j2fxff6 wrote

So i would have had to initiate the rollover and empty the traditional IRA account by 12/31/2022 and since I did not do that I am basically out of luck for a 2022 backdoor Roth.

Well, that sucks but not the end of the world...lesson learned.

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