The new tax law makes Roth IRAs officially available to even more people. Then, presto chango, you immediately convert the money in the traditional IRA to a Roth IRA. Here’s the pitch for Roth IRAs: You can put up to $5,500 a year into one of these accounts–$6,500 if you’re 50 or older. For one, you need earnings (wages or self-employment income) to get to the first step—making the traditional IRA contribution. In practice, that affects taxpayers with large traditional IRAs who are converting, not those doing serial, smaller backdoor Roth conversions.

Source: Forbes January 22, 2018 13:52 UTC