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Here’s why you may want to reconsider doing that backdoor Roth IRA conversion

Anthony P. Curatola
Here’s why you may want to reconsider doing that backdoor Roth IRA conversion

CORRECTION: An earlier version of this article incorrectly suggested a way around the dilemma of an existing IRA. Converting taxable income into nontaxable income is something all taxpayers are eager to do. The backdoor Roth IRA is one of those options — but there are state and federal tax pitfalls to converting money from a traditional IRA or a qualified retirement account (such as a 401(k)) to a Roth IRA.