Future Contributions After Backdoor Roth

by Michael on Jan 28, 2013

Image of IRA Nest Egg

A reader recently asked about the possibility of making “regular” Roth IRA contributions after making so-called “backdoor” contributions.

The short answer is that backdoor Roth IRA contributions have no affect on your ability to make standard contributions going forward.

At the end of the day, all you’re doing is a Roth IRA conversion and there are no rules against having both regular contributions and conversions in the same account. In fact, the IRS explicitly recognizes this possibility when spelling out their rules for ordering distributions.

If your income drops below the limit for making contributions at some point in the future, you can simply revert to making standard contributions without first running the money through a traditional IRA.

No fuss, no muss. Just a whole lot of tax-free goodness. 🙂

Just be careful to respect the annual IRA contribution limit. As a reminder, this is a combined limit, so the total of your traditional and Roth contributions can’t exceed this amount in any give year.


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