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Planning to convert my Traditional IRA to Roth for backdoor. How much of this will I be taxed for pro rata
Current tIRA- 8,400. All of this is pre-tax
Current Roth 40k
Tax bracket 24%
Don’t have a job where I can roll my tIRA to 401k.
I have not contributed for 2020 and 2021 yet. Should I do the conversion now, skip 2020 contribution and do 2021 contribution next year before April? Will lower tax liability or not bc 2020 and 2021 will be post tax dollars? Should I contribute 2020 and 2021 before converting tIRA to Roth.
You'll pay taxes on the 8400 one way or the other. And if you do the conversions of the new IRA contributions when they are still close in value to the contribution you pay no taxes on those.
To max out the Roth conversion, you'd probably contribute both for the 2020 and 2021 tax year and roll over to the Roth after a few months.