Back door Roth IRA conversion

#1

Can you do the conversion multiple times a year or just once a year?

#2

Hey Krnboix86,

As many times as you want up to the contribution limit for that particular year.

Example:

  1. Contribute $500 liquid cash into your Traditional IRA monthly

  2. Convert $500 liquid cash from Traditional IRA into Roth IRA monthly

  3. Invest $500 liquid cash in Roth IRA into preferred security holdings

Happy Investing!

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#3

A clarification to Rick’s response:

  • You can convert from IRA to Roth IRA at any time for how ever much you want. However, as you know, you can only contribute $6k to any type of IRA/year (currently). If you have an IRA balance that was rollover from an ex-employer, and that balance is more than $6k, you can still convert that whole balance throughout the year or at one time if you want.

There is a limit to how much you can contribute to an IRA, but there is no conversion limit. You just need to be careful of the tax implications if you do convert.

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