Should I proactively do a backdoor roth ira?

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Topic Author
vanw
Posts: 11
Joined: Thu Oct 28, 2021 8:00 pm

Should I proactively do a backdoor roth ira?

Post by vanw »

Hi everyone,
I wanted to know if I should proactively do a backdoor roth ira. Last year I wasn't sure if me and my wife's MAGI would go over the limit. In June I found out it wouldn't so I fully funded both our Roth IRA's.

This year I'm in a similar position. Can I proactively do a backdoor roth ira now instead of waiting until June? Does anything happen if our MAGI is under the limit and we proactively did a backdoor roth?

I'm relatively new to all this so any good advice is very helpful.

Thank you!
Silk McCue
Posts: 8951
Joined: Thu Feb 25, 2016 6:11 pm

Re: Should I proactively do a backdoor roth ira?

Post by Silk McCue »

There is no harm in doing a Backdoor Roth even if it turns out to be unnecessary. It is the safest route without having to wait until later in the year. Many here do it.

Cheers
Topic Author
vanw
Posts: 11
Joined: Thu Oct 28, 2021 8:00 pm

Re: Should I proactively do a backdoor roth ira?

Post by vanw »

Thanks so much SILK MCCUE, I appreciate your help!
Affable at 50
Posts: 281
Joined: Fri Dec 27, 2019 1:34 am

Re: Should I proactively do a backdoor roth ira?

Post by Affable at 50 »

vanw wrote: Sun Jan 16, 2022 8:18 pm
Does anything happen if our MAGI is under the limit and we proactively did a backdoor roth?
There's no harm in proceeding with the backdoor Roth IRA as long as you have no traditional IRAs as of 12/31/2022.
synacksyn
Posts: 23
Joined: Fri Jan 14, 2022 12:26 pm

Re: Should I proactively do a backdoor roth ira?

Post by synacksyn »

No downside in doing a backdoor Roth
Doc7
Posts: 1122
Joined: Fri Aug 24, 2007 12:55 pm

Re: Should I proactively do a backdoor roth ira?

Post by Doc7 »

I think anyone within 30-40k of limit should do it, that way if you get a crazy bonus or lots of overtime, etc, you’re good.
Topic Author
vanw
Posts: 11
Joined: Thu Oct 28, 2021 8:00 pm

Re: Should I proactively do a backdoor roth ira?

Post by vanw »

Thank you so much affable at 50, synacksyn, and Doc7. I really appreciate your responses!
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Eagle33
Posts: 2391
Joined: Wed Aug 30, 2017 3:20 pm

Re: Should I proactively do a backdoor roth ira?

Post by Eagle33 »

Affable at 50 wrote: Sun Jan 16, 2022 8:39 pm
vanw wrote: Sun Jan 16, 2022 8:18 pm
Does anything happen if our MAGI is under the limit and we proactively did a backdoor roth?
There's no harm in proceeding with the backdoor Roth IRA as long as you have no traditional IRAs as of 12/31/2022.
There's no harm in proceeding with the backdoor Roth IRA as long as you have zero balance in your non-Roth IRAs (traditional, rollover, SIMPLE, SEP, etc.) as of 12/31/2022.
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