tastethesaltinthesea OP t1_iud1rx6 wrote on October 30, 2022 at 12:22 PM

Reply to comment by debbiewith2 in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

I didn't even think about that. Thanks! And I can convert all $22k at once, correct? The annual contribution limit to the IRA is $6k/$7k if I understand correctly, but if the IRA already has contributions I can just move the whole thing to Roth?

debbiewith2 t1_iud9zov wrote on October 30, 2022 at 1:38 PM

Correct. Or choose to split over years. Just remember that earnings that accumulate in the traditional will be taxed when you convert. When the market is down, it is cheaper to convert. You’re welcome!