Backdoor Roth IRA step by step: the pro-rata trap and how to file Form 8606
If your income is over the Roth limit, you can make a nondeductible traditional IRA contribution and convert it. The catch is the pro-rata rule: every traditional, SEP and SIMPLE IRA in your name on December 31 of the conversion year counts. Includes a worked example with a $50,000 old IRA and the year-end fix.
Read article