Incorrect, not anyone can put 5500 into a roth. You are describing an after-tax traditional IRA contribution that immediately gets converted and moved into a roth. It is not the same.
- You put the same after tax $5500 into a traditional IRA
- You immediately convert the traditional IRA contribution and move it into a roth IRA
- You fill out all the tax forms for this conversion (assuming most do not know how to do it, you pay an accountant to do it for you)
Also, based on the new tax laws, a 2017 traditional contribution (made before April 15th) that then becomes a 2018 roth conversion does not make sense for all taxpayers.
Quote:
Originally Posted by foo_fighter
Anyone can put 5500 into a Roth. If one was over the limit for direct contribution, the back door conversion could be used.
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