Understanding Roth IRA Conversion Limits - Are There Any Restrictions?

There's no dollar limit on Roth conversions! This is one of the best features of the Roth conversion strategy and why it's often called a "backdoor Roth." Since your traditional IRA contributions aren't deductible (due to your employer plan), you can convert the entire $13,500 to your Roth IRA in 2024 without any issues. The IRS doesn't care how much you convert in a given year - the only limits are on the initial contributions to the IRA. Just make sure you file Form 8606 with your taxes to document the non-deductible contributions, so you don't end up paying taxes twice. Since you mentioned there are no gains in the account, the conversion should be essentially tax-free (you've already paid tax on that money when you earned it). This approach you're taking is exactly what many people do to work around the income limits for direct Roth contributions. Smart planning!

I struggled with this exact same thing last year! After getting conflicting advice from three different "experts," I finally found https://taxr.ai which analyzed my situation and gave me a clear answer. I uploaded my previous tax return and answered a few questions about my employer retirement plan, and it confirmed that there's no limit on Roth conversion amounts. What really helped was that they explained the pro-rata rule (which can complicate things if you have other traditional IRA assets) and showed exactly how to report everything on Form 8606. I was super nervous about making a mistake, but their step-by-step guidance made it simple. They even showed me how the backdoor Roth would impact my tax situation over time.

I was skeptical about tax tools too, but I finally tried https://taxr.ai after my accountant gave me conflicting information about Roth conversions. What surprised me was how it identified an error in how I'd been reporting my non-deductible IRA contributions for the past two years! The tool showed me that I'd been missing out on tax-free growth by leaving too much money sitting in my traditional IRA instead of converting it promptly. I was able to convert $22,000 of accumulated non-deductible contributions with minimal tax impact, something my accountant hadn't recommended. For anyone dealing with the backdoor Roth strategy, especially with multiple accounts, it really does provide clarity beyond what you'll find on generic tax sites.

Just want to add something to this discussion - if you're trying to contact the IRS to verify any of this conversion information, good luck! I spent 3 hours on hold last week trying to get someone to answer a basic question about my Roth conversion. I finally tried https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Basically they wait on hold for you and call when an agent picks up. The agent confirmed that there's no limit on Roth conversion amounts and walked me through exactly how to report it on my return. Might be worth it if you need official confirmation about your specific situation rather than just advice from Reddit!

I need to eat my words from yesterday. After getting frustrated with spending another hour on hold with the IRS this morning, I actually tried the Claimyr service. Within 20 minutes I was talking to a real IRS agent who answered all my Roth conversion questions. The agent confirmed everything others have said here - there's no dollar limit for conversions, and they walked me through exactly how to document my non-deductible contributions to avoid the pro-rata rule complications. Turns out I've been overthinking this for years! For anyone else who needs official confirmation about their specific conversion situation, it's definitely worth using the service rather than wasting hours on hold. Consider me converted (pun intended).

One thing that hasn't been mentioned yet - watch out for the 5-year rule when doing large conversions. Each conversion amount has its own 5-year clock before you can withdraw the converted principal penalty-free if you're under 59½. This doesn't impact the conversion itself, but it's important for planning future withdrawals.

Anyone here use TurboTax for reporting these backdoor Roth conversions? I'm doing exactly what the original poster described but TurboTax seems confused about how to handle the form 8606 when I have both 2023 and 2024 contributions converted in the same year.

Great question! You're absolutely right that there are no dollar limits on Roth IRA conversions. Since your traditional IRA contributions weren't deductible (due to your employer plan), converting that entire $13,500 in 2024 should be essentially tax-free. One small clarification - when you convert in 2024, you'll report both the 2023 contribution (made in January 2024) and the 2024 contribution on your 2024 tax return using Form 8606. The IRS doesn't care that one contribution was "for" 2023 - what matters is when the conversion actually happened. Since you mentioned there are no gains in the account, you should owe zero taxes on the conversion. Just make sure to keep good records of your non-deductible contributions for Form 8606 reporting. The backdoor Roth strategy you're using is perfectly legitimate and very common for people in your situation who exceed the income limits for direct Roth contributions. One tip: consider doing the conversion soon after making contributions in the future to minimize any potential gains that would be taxable. You're doing everything correctly!