Backdoor Roth IRA capabilities
B
Brett Wysopal, CFP, EA, ECA
I have a lot of clients who are doing backdoor Roth IRAs in the calendar year. When I enter a savings value for a Roth IRA for a client who is phased out of direct contributions to a Roth IRA, the system defaults to a $0 savings value for projections and cash flow planning. It'd be nice to have a toggle, maybe within the Roth IRA, labeled "Current Year Backdoor Roth." You can toggle that switch to let the system know this is after-tax money being put into the account and count it as savings for the year.
As of now, the work realm suggests that money either has to be put into a traditional IRA as a savings goal or into a taxable account. Either way, both of those then throw off the tax allocation chart in the system.