Employee Benefits Blog

Posts tagged Roth IRA conversions

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The “Back Door” Roth IRA Contribution – Unintended Tax Consequences

Following up on an article that appeared in the BNN Newsletter last October, this blog post will focus on an important and increasingly popular tax planning tool involving Roth conversions.

Many high income individuals are ineligible to directly make Roth IRA contributions because their modified adjusted gross income (MAGI) is too high. For 2014, MAGI in excess of $191,000 for married individuals filing jointly, and $129,000 for single individuals, means that these individuals would not be eligible to contribute directly to a Roth.