BACKDOOR ROTH
01.Core Concepts
Nondeductible Contribution to IRA of $7,000 IRA Conversion to Roth IRA Roth IRA • No income on backdoor Roth, unless taxpayer has pre-tax funds in their IRAs. If so, then basis must be prorated over all IRA balances. • Permits taxpayers who have income in excess of annual contribution limits to fund Roth IRAs.