Nothing to do. My only choice is the settlement account in the Roth IRA for this step. I have just one question. And follow it with my regularly scheduled contribution to my non-deductible traditional IRA, which I would then do another backdoor Roth IRA, without being penalized?? Dear PoF. I haven’t seen this question being asked, so here goes. Mayojayo, same with me. No need to worry. You can, but you’ll have to file Form 8606. Did you fund from your bank or from a non-qualified account at Vanguard? (a) Do I need to create a new roth account, before doing the step 2. Wondering if Ming and I did something wrong or if this is a new thing at Vanguard. If you’ve got an eligible spouse (and by eligible I’m referring to backdoor Roth eligibility), the two of you can sneak $24,000 into Roth accounts this year as long as you complete the 2019 contribution by mid-April, 2020.”. If you earn too much to contribute directly, this is something that should have been picked up years ago. You should have ’til the end of the calendar year to get it right, so no hurry. Hey Thomas! I have some money left over in an old IRA from 2017, that has appreciated some over that time. To get started, log in and click on your Traditional IRA. I’m still within the 7-day window for the funds to “settle” in my traditional IRA, and it says the funds are unavailable, just like it does in your example. If i have to do the second option, then what should i do about the 100$ that will be left in the traditional IRA. Hi, how to bypass this stupid one week ban on all website functions ? Can I put money (even though it’s coming from my income/our combined savings) directly into a roth for him without doing the backdoor conversion since he’s unemployed? Last year I rolled over my trad IRA to my employer 401k, then did the back door. Posted by 2 years ago. What do you do with a Roth account that goes down? Doesn’t matter if your backdoor Roth moves come beforehand. She said I should call vanguard monday and see if they can either cancel it or change it to a traditional IRA and kick the can on paying taxes till I retire. Hi.. It may be that we both have brokerage accounts for the traditional IRA and “mutual fund” accounts for the Roth IRA. Am I allowed to open up a new traditional non deductible IRA and convert to Roth while leaving the rollover IRA intact? Thanks for sharing your thoughts! This post is old but I just happen to see it, and I post my question just in case you would respond. I hope I clarified the birds-nest problem. Being able to roll an IRA into a 401(k) is something I only recently learned was even possible. Get top-notch CME and peer-reviewed content. So I have successfully converted to Roth IRA. I wish they would have left things alone — it gets confusing when we’re looking at different screens in trying to accomplish the same thing. seems like i first open a traditional ira account for each of us and contribute there first then do back door roth conversion for both, is this correct? Both Roth and tax-deferred accounts benefit from tax-free growth, unlike a taxable account that is subject to tax drag (which can be minimized). If you participate in a workplace retirement plan, you won’t be eligible to contribute as an individual earning more than $73,000 or as a couple earning more than $121,000 in 2018.”. The warning that this is a taxable event than cannot be changed is nothing to be concerned about, and it can be dismissed. I am able to contribute the full 6k each year into my ROTH IRA. Now, you could have a taxable account that acts a lot like a Roth if you buy a zero-dividend fund /stock (Berkshire Hathaway), remain in the 15% federal tax bracket (no tax on QD & LTCG) and remain in the 15% bracket when you sell. Each year on January 1st, a 15.5 month window opens for you to make an IRA contribution. That makes 3 backdoor Roth contributions in 10 months (or 6 if you’re married). You must select the tax year in which your transactions are reportable. It’s only an issue if you have tax-deferred money in an IRA and you make a conversion to Roth. Some do; some don’t. I searched through the history but couldn't find anything related to this. A backdoor Roth is a strategy for people whose income is too high to be eligible for regular Roth IRA contributions. Leaving the 4k to Roth while leaving the rollover IRA 8606 with your post is old but work... For confirming that my balance is the recommendation ( or anyone else to mess up taxes! 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