Question: (Kevin, NJ) Dear Joe and Big Al, love listening to your show! I just discovered it a couple months ago and found both the information and entertainment off the charts. Laugh and learn, doesn’t get much better than that. Now for my question on, you guessed it, #RothConversions. This time especially on the pro rata rule and non-deductable contributions. For the first time my wife and I will have too large an income to contribute directly to a Roth IRA. In looking into the backdoor Roth I found the Pro rata rule will affect me as I had to start the year around 100k in a pretax IRA from a previous 401k rollover. My wife has no pretax IRA funds so we can do a simple backdoor for her full contribution. My 100k became 80k with the market downturn. My goal was to convert up to the top of the 24% tax bracket to the Roth and complete the rest next year, probably 50k this year and 30k next year. So far I have converted 20k of the 80k. If I contribute the full $6000 as a non-deductable contribution now, how do any earnings or losses on that portion affect the pro rata rule? Does it not matter when I convert during the year compared to when I contribute? Only the balance remaining at the end of the year, the total converted funds and the $6000 contribution? If I wait until after I convert all the funds in March of 2023 to contribute for 2022, would that make any difference? I drive an ’09 Fusion and love a great Kentucky bourbon. Thanks for all you do!

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