---
title: "There’s Still Time: Backdoor Roth Conversions"
description: The backdoor roth allows high income earners access to the benefits of the Roth IRA. It's still allowed now, but may not be for long.
image: http://www.wrapmanager.com/hubfs/blog-files/Backdoor_IRA_Blog_Image.png
---

[![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/)

The Money Manager People TM

[800-541-7774](tel:+18005417774)

[![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5)

[![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2)

[Home](https://www.letsassemble.com/)

WrapManager's Wealth Management Blog

When life changes, we can help you thoughtfully respond.

[< Back to read another post](https://www.letsassemble.com/wealth-management-blog)

# There’s Still Time: Backdoor Roth Conversions

Posted by [ Gabriel Burczyk | Founder & CEO](https://www.letsassemble.com/wealth-management-blog/author/gabriel-burczyk)  
 August 3, 2016

- [Tweet](https://twitter.com/share)

![Backdoor_Roth Conversions](http://www.wrapmanager.com/hubfs/blog-files/Backdoor_IRA_Blog_Image.png "Backdoor_Roth Conversions")Two years ago we wrote an article about how high income earners—who are generally excluded from Roth IRAs because of income levels—could still technically contribute to Roth IRAs if they used the right methods. We wrote that “[high income earners could make non-deductible contributions to a Traditional IRA (non-deductible IRA), then take that money and move it into a Roth IRA](http://www.wrapmanager.com/wealth-management-blog/how-high-income-earners-can-still-contribute-to-roth-iras).” This method allowed income earners access to the benefits of the Roth IRA, which notably are: the ability to **grow your money tax-free and also make tax-free withdrawals**.

Well, as of December 2015 it appears as though the option is still on the table, but it may not last much longer. Have you explored the backdoor Roth option with your financial advisor?

## Congress May Determine the Future of the Backdoor Roth

Last December, Congress passed the Protecting Americans from Tax Hikes Act of 2015, which was also known as the ‘tax extenders legislation.’ There were a few tax planning provisions that Congress allowed to continue, like the state and local sales tax deduction and the American Opportunity Tax Credit for college. But for high income earners, one of the most unique was allowing the backdoor Roth IRA to continue.

If you’re married and you make between $184,000 - $194,000, you would typically be phased-out of contributing to a Roth IRA. But since there are no income limits for contributing to a Traditional IRA and the backdoor option is still allowed, you can potentially make the maximum Roth IRA contribution ($5,500 annually, or $6,500 if you're age 50 or older) by [contributing to a Traditional IRA first and then converting it to a Roth after](http://blogs.wsj.com/experts/2016/01/11/you-can-still-do-a-backdoor-roth-ira-conversion-for-now/).

While the backdoor option remains open for now, there is certainly the possibility that Congress could legislate it away sometime this year and make it retroactively apply to all of 2016. But in an election year, it does not seem like it would be a high priority for Congress to do so (for either party). There is typically a legislative calm leading into a presidential election, as neither party wants to stir the pot too much and create any backlash. So, high income earners could still pursue this approach in 2016, but your time may be running out.

## Contact a Wealth Manager at WrapManager to Discuss Your Options

Using the backdoor Roth method is not necessarily a clear cut process each time – there are certain stipulations that each retiree/investor need to adhere to. If you’re interested in the exploring the option as part of your investment plan, you should consult with a financial advisor before taking any action. One of our Wealth Managers would be happy to walk you through your potential options and evaluate your investment plan for you, to see if the option may make sense. Please reach out to us at [1-800-541-7774](http://www.wrapmanager.com/wealth-management-blog/wells-fargo-advisors-lack-of-dovish-action-leaves-investors-cold/tel:+18005417774) or [contact us here](https://www.wrapmanager.com/contact) to speak with one of WrapManager's Wealth Managers.

*The information presented by WrapManager, Inc. is general information only and does not represent tax or legal advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance. WrapManager, Inc. does not advise on any income tax requirements or issues.*

---

Sources:

[IRS](https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016)

[Wall Street Journal](http://blogs.wsj.com/experts/2016/01/11/you-can-still-do-a-backdoor-roth-ira-conversion-for-now/)

 

[Retirement Planning](https://www.letsassemble.com/wealth-management-blog/topic/retirement-planning) [Investment Plan](https://www.letsassemble.com/wealth-management-blog/topic/investment-plan)

[![A guide to finding a better financial advisor](https://no-cache.hubspot.com/cta/default/10700/202250e7-ef82-4e50-a9c7-25c5bd555f4c.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/202250e7-ef82-4e50-a9c7-25c5bd555f4c)

### Subscribe to Updates

[Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml)

[![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf)

### Most Recently Published

### Blog Authors

[![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)  
[Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[**Valerie De Vol, **IACCP®  
Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[**Seton McAndrews, **CFP®  
](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

**[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA®  
](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png")

[**Katie O'Connor  
**Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor)

**Important Disclosure Concerning WrapManager Blogs**

Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction.

Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted.

WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

 

 

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Gabriel Burczyk",
    "url" : "https://www.letsassemble.com/wealth-management-blog/author/gabriel-burczyk"
  },
  "datePublished" : "2016-08-03T17:00:00.000Z",
  "headline" : "There’s Still Time: Backdoor Roth Conversions",
  "image" : [ "http://www.wrapmanager.com/hubfs/blog-files/Backdoor_IRA_Blog_Image.png" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.letsassemble.com/wealth-management-blog/theres-still-time-backdoor-roth-conversions",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png"
    },
    "name" : "Assembly"
  }
}
```