Roth contribution in same year as Traditional IRA to ROTH conversion

Forum|Forum|2 years ago
December 25, 2023
1 reply
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I am planning to convert part of my Traditional IRA to a Roth IRA for 2023. Can I also make a contribution to a ROTH IRA for the same tax year? Or would that be considered an over contribution?

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Best answer by SteamTrain

You should be OK with that.

The conversion from a traditional IRA to a Roth IRA is NOT considered a contribution....but the conversion does add to your taxable income (unless some portion of the traditional IRA contributions were not deductible). Thus, some folks do the conversions over a couple years to keep taxes down.

In case it matters, remember that you do normally need working income (W-2 wages or self-employed profit) in order to make the Roth IRA contribution itself.

SteamTrainAnswer

Employee

You should be OK with that.

In case it matters, remember that you do normally need working income (W-2 wages or self-employed profit) in order to make the Roth IRA contribution itself.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

burgerguy14Author

Thanks. I do not have w-2 income. I am retired and receive rental property income. But this year the rental income will be close to zero or slightly negative. That must be why TurboTax created a Form 5329-T and "fined" me for over contributing (on paper).

VolvoGirl

Employee

Sorry you can not make any new contributions. You can convert a IRA. You need earned income from W2 wages or a Net Profit on Schedule C to contribute. Rental income doesn't count as earned income not just because you had a loss.