Back Door Roth re: 2018 Update

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Back Door Roth re: 2018 Update

This topic contains 1 reply, has 2 voices, and was last updated by  TS Paul 1 year, 8 months ago.

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  • #30355

    dcrefugee
    Participant

    Just would like to be clear on this. Say in the past I was able to fund a Roth IRA directly because my income fell within the limits but now I cannot. This Roth is at Vanguard. I am able to open a traditional IRA at Vanguard (selecting non-deductible) fund it $5500 and then call to have them place those funds into my Roth. Will I have to then open a new traditional IRA funding @ 5500 and convert or could I use the same traditional IRA year in, year out?

    #30356

    TS Paul
    Keymaster

    The process is exactly as you described above. I haven’t done the process with Vanguard, but if they handle it like Merrill Lynch does your traditional account will be closed when you convert it, so they will create a new account number each year.

    You can consolidate your conversions into the same Roth account though, so it all winds up in one account.

    The TSP Allocation Guide www.TSPallocation.com

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