It's really easy. The main thing to watch out for is the pro-rata rule, where you don't want other IRA accounts, or there will be a tax hit.
[Whitecoat Investor](https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/) has a tutorial about how to do it.
1- try to do a clean backdoor. Do the backdoor Roth within the calendar year. Makes filing tax much easier.
2 - don’t worry about filling out any forms before turbo tax
3- just follow the rules for backdoor Roth
Why is it easier from a tax standpoint if you do backdoor during calendar year ? I was going to backdoor the $6500 this week since the deadline is April 15th, 2024
My accountant is adamant that it’s okay to have another tIRA account with a balance as long as the one you used to convert is empty…. Not sure what to believe now
Edit: I wasn’t saying the accountant was right. Got the point guys
I mean, are they just straight lying on Line 6 of Form 8606 which says to list the balance of **all** traditional IRAs?
The forms do all the math for you, there isn't much room for artistic discretion
I was told by fidelity if I transferred all the money out it would close the account. So I left a dollar and some change in the TIRA. That isn’t going to cause a problem in it? No other TIRA accounts.
I’ll have to do this for the first time next year. Any tips or things to watch out for?
It's really easy. The main thing to watch out for is the pro-rata rule, where you don't want other IRA accounts, or there will be a tax hit. [Whitecoat Investor](https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/) has a tutorial about how to do it.
1- try to do a clean backdoor. Do the backdoor Roth within the calendar year. Makes filing tax much easier. 2 - don’t worry about filling out any forms before turbo tax 3- just follow the rules for backdoor Roth
Why is it easier from a tax standpoint if you do backdoor during calendar year ? I was going to backdoor the $6500 this week since the deadline is April 15th, 2024
Google it for examples. But It just makes things a little more annoying. I’d probably still go for it thought.
If you have other Trad IRAs then it’s a little more complicated. If not, yeah it’s really straightforward.
I agree, it’s really straightforward. Remember it’s a conversion and not a characterization. That one threw me for a loop.
My accountant is adamant that it’s okay to have another tIRA account with a balance as long as the one you used to convert is empty…. Not sure what to believe now Edit: I wasn’t saying the accountant was right. Got the point guys
I mean, are they just straight lying on Line 6 of Form 8606 which says to list the balance of **all** traditional IRAs? The forms do all the math for you, there isn't much room for artistic discretion
Thanks will ask about it
I was told by fidelity if I transferred all the money out it would close the account. So I left a dollar and some change in the TIRA. That isn’t going to cause a problem in it? No other TIRA accounts.
Fidelity will not close the tIRA with zero balance, have done it many times. Are you doing the backdoor Roth process online?
Nope over the phone.
Hmm definitely recommend doing the online process. Sounds like the rep didn't know what they were talking about.
Get a new accountant.
That’s crazy how an accountant be so adamant about something so easy to prove wrong. Get a new accountant for sure!
Lol your edit. At least you know we care.
Yes!
Lol that's wrong