The IRS has weighed in tersely on immediate backdoor Roth conversions, but that may not put to rest the controversy kicked up by a recent Financial Planning article on the strategy.
Many planners use these conversions regularly because they are a boon for high-income clients. IRS phaseouts fully disqualify clients with high, adjusted gross incomes from making direct contributions to Roths. For single tax filers the income phaseout threshold is $131,000 for 2015; for married couples filing jointly it's $193,000.
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