IRA Basis Rules - Warning for Backdoor Roth

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  • čas přidán 15. 07. 2024
  • Watch out for the IRA Basis Aggregation rules!
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Komentáře • 16

  • @toddjones8205
    @toddjones8205 Před měsícem +1

    Excellent video! This is the clearest explanation of the Backdoor Roth and IRA aggregation rules that I've seen to date. Well done.

  • @mmhodler5753
    @mmhodler5753 Před 3 lety +2

    great explanation. saved me from making a mistake

  • @papabear4066
    @papabear4066 Před rokem +2

    Thank you! What you just have explained here, is not explained anywhere else on CZcams or Google. I think you need to make another video with a title “can I back door Roth with a 401k at work?”. I got work 401k both pre tax and Roth and no traditional IRA’s anywhere. Now after watching you video, I know that I can open a traditional IRA and back door money to Roth, while I am contributing maximum to my 401k at the same time. 🎉

  • @Guidon2006
    @Guidon2006 Před 3 lety

    Very informative, thank you!

  • @richardknutson9515
    @richardknutson9515 Před 3 lety +1

    Great info, had no idea how that worked. I just did my first after tax IRA to roth IRA conversion, good thing is I do not have a tax deferred IRA so I should be clear of this IRA aggregation mess.

  • @mrmogausa
    @mrmogausa Před rokem

    Great Information. I am single filer and make more than the Roth IRA contribution limits. So in 2020, I opened a Traditional IRA and contributed $6,000, then converted all of it to Back door Roth IRA. I made no contribution in 2021. In 2022, I made another $6,000 contribution to Traditional but only converted $4000 to Roth IRA. This was taken as a taxable event and I had to pay taxes on $4000 of Gross distribution. Now I don`t understand why is it called a distribution when I only converted the $4000 from Traditional IRA to Roth IRA just like I did in 2020? And why I had to pay taxes on converting $4000 in 2022 while I didn`t have to pay taxes on my conversion in 2020?

  • @g.1100
    @g.1100 Před 3 lety

    thanks for such great explanation. i have a situation where I have a mix of pre and post tax money. I understand your recommendation and plan to execute exactly as explained, but I am not clear as far as where would the traditional IRA growth be transferred to...since the growth hasn't been taxed, can I transfer it to my 401k as well?

    • @WiseMoneyShow
      @WiseMoneyShow  Před 3 lety

      Yes, the growth on the pre-tax portion would be transferred to the IRA.

  • @slimdawgwoof
    @slimdawgwoof Před 3 lety

    Nerdy is fun.

  • @jeffreybiden3577
    @jeffreybiden3577 Před 3 lety

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    • @crystalballou6603
      @crystalballou6603 Před 3 lety

      seek the guidance of a professional.

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      @johndwilson638 Před 3 lety

      I watch youtube videos and take courses , baby steps but it works for me.

    • @bradleygriffin8969
      @bradleygriffin8969 Před 3 lety

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    • @michaelbuffet251
      @michaelbuffet251 Před 3 lety

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      @buffettharrison7787 Před 3 lety

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