It’s hard to answer to this because for some it may be a good idea and for some it might be a bad idea. Because it varies from person to person but it is super bad idea if =
1) You will need that money you put into the backdoor Roth IRA in less than 5 years.
This is because the money which you put to backdoor Roth IRA through the converting process from an IRA to a Roth IRA falls for whatever reason under the category of Roth IRA five-year rule. Which is if you don’t wait 5 years to take it out then you will probably have to be charged with a penalty which is called “10% early withdrawal penalty”
2) The only way you can pay off your taxes with is through the money you get from your IRA withdrawal.
By doing this you sacrifice the investment growth on your money in the future. You will also face a risk of you are under the age of 59 1/2 you will pay the “10% early withdrawal penalty”.
3) And this last one is about the withdrawal from your IRA which will push you into a higher income tax bracket.
For the most part it is a good idea to convert just enough that you’re not pushed into paying a higher tax rate that year.
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