Back door Roth
When I view my past FreeTax USA returns, I notice that my 2021, 2022 and 2023 Form 8606 is completed/filled out different for each year. Even though the identical process was attempted(back door Roth). Is there an expert for 2024 going to be available to help straighten out this mess when I use your service in the next few months?
Best Answer
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Hello sctrim!
Our Pro Support agents mostly answer questions and review returns on a live chat or phone call. However, it is possible to message them from within your account as an email. Regardless of how you contact them, they will be able to assist you. We recommend you choose what works best for you.
Answers
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Hello sctrim!
At FreeTaxUSA, we have many resources available to help you with your situation. You can contact us through our Customer Support services from in your account, and you can even upgrade for additional services as well.
One such upgrade is Deluxe support. Deluxe allows you to have priority support (your questions jump to the front of the line!), live chat, and unlimited amended returns. This costs $7.99 and can be purchased here:
FreeTaxUSA® Best Tax Software - Deluxe Online Tax Program
If you are looking for a Tax Pro to help you out, you can upgrade to our Pro Support package. This gives you access to a licensed CPA/EA, tax advice, all the features of Deluxe, phone support, and screen sharing. This upgrade costs $39.99 and can be purchased here if you are interested:
Expert Tax Help for Online Filing with FreeTaxUSA® Pro Support
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I might be mistaken, but I have upgraded every year. Last year, iirc…to the pro support edition. 🤷♂️
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Seeing that you have access to my 2021-2023 returns, would it be most efficient for one of your experts to review them(IRS form 8606), at their leisure? That would save a lot of back n forth via online chat.
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I have IRA trandition account in Etrade with pre-tax money.
Can I do backdoor Roth by creating new ROTH and IRA account with Vangard?
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Are you trying to say….you have a 'Traditional IRA', and would like to convert it to a Roth?
If yes, you HAVE to call Vanguard and ask them. They will tell you exactly what you are allowed to do in this situation. Also….Back door Roths are an investment solution(loophole) for people that far exceed the income levels for a normal Roth IRA contribution.
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Hello ajay_anand!
Vanguard would probably have more information on that. If they don't do allow a Backdoor Roth, they can most likely help you find where you can.
Their customer service page is here:
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Vanguard allows. Only question here is - can I keep 2 traditionalIRA traditional accounts - one for pre-tax money and other for backdoor ROTH transaction(post-tax money)?
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Hello ajay_anand!
There is no limit to how many IRAs you can have. Just keep in mind that even if you have multiple IRA accounts, your overall contribution limit is still $7,000 ($8,000 age 50 or older).
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Thanks IanS. I asked this because I heard, for Backdoor Roth contribution which is post-tax, there should not be pre-tax money in any IRA account. Is this true?
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You HAVE to call Vanguard. They want you to call and answer your questions. Otherwise, you will be wondering what the correct answers are until the end of time.
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From the Vanguard website……
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Hello ajay_anand!
Because of the Pro-Rata rule, if you make a Backdoor Roth and you have pre and post-tax contributions in your traditional IRAs, the conversion will be taxed as one entity. When the conversion process is made, there will be no distinction between what has already been taxed or not. In other words, it is possible to be taxed again on post-tax contributions. This is why generally people don't do a Backdoor Roth if they have both pre and post-tax contributions in their IRA.
For more information on how this works, you can take a look at this article:
