Back door IRA question

Submitted by bluetrader518 t3_zzyjbd in personalfinance

I have a question that I can’t seem to find an answer too. So normally a person would have a Roth IRA account and contribute the max every year into the one account. So if I have to do a conversion every year, does that mean I’ll end up with multiple IRA accounts or can I just contribute to the original conversion account until I retire? Thanks.

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DeluxeXL t1_j2ec96d wrote

No. You're converting the balance inside a traditional IRA to Roth IRA, not the account itself. The two accounts stay exactly where they are. The contents move.

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freddie_the_mercury t1_j2ebmw5 wrote

nope. same account. leave traditional open with $0 balance. contribute to it first week of Jan and convert to existing Roth account.

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bluetrader518 OP t1_j2ee2ei wrote

So the next year, I can just contribute right into that account?

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nothlit t1_j2eiu8u wrote

Every year that the backdoor method is required, you must contribute to the traditional IRA and then convert to Roth IRA. You can keep and reuse the same traditional IRA and Roth IRA year after year.

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bluetrader518 OP t1_j2fp88d wrote

This was exactly the answer I was looking for. Thank you.

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