首先你不可以拥有一个tax deferred IRA在你名下,这包括了Traditional IRA,SEP IRA以及SIMPLE IRA,但是不包括401k,403b以及类似账户。 如果你已经有tax deferred IRA钱的话, 必须根据pro-rata 规则来做conversion. 如果你已经有此类账户, 你需要把钱挪到别的地方或者就不要惦记backdoor Roth了。 如果这些账户里的...
It’s clear that everyone, from Congress to the IRS to the financial institutions, is aware of the Backdoor Roth IRA. Just look at the ads from Charles Schwab and Fidelity: In fact, Vanguard even mentions the backdoor conversion on its site. If the IRS or a tax court invalidates Back...
You put money into a Roth IRA through the backdoor when you aren’t eligible to contribute to it directly. That’s why it’s called a Backdoor Roth. You pay tax on a small amount of earnings between contribution and conversion. That’s negligible relative to the benefit of having tax-f...
I know, I know. They both have the word Roth in them. They must be the same thing. The Backdoor Roth IRA even includes a conversion step, so I suppose it shouldn't be surprising that people get confused. But there is a key difference. When you do the conversion in the Backdoor Ro...
If you did a Backdoor Roth, which involves making a non-deductible contribution to a Traditional IRA and then converting from the Traditional IRA to a Roth IRA, you need to report both the contribution and the conversion in the tax software. For more information on Backdoor Roth, please rea...
The Mega Backdoor Roth IRA allows you to contribute after-tax 401k contributions and then roll them over into a Roth IRA.
vehicles like the 401(k) andskepticalof tax-now vehicles like the Roth IRA. Working in banking, I was already being taxed out the wazoo and had no desire to pay even more. Frankly, I wasn’t even familiar with the Roth IRA or the mega backdoor Roth IRA when I first started working...
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这两个账户没什么本质区别,除了Roth IRA可以本金随时取出之外这点好处。其他的差别有Roth 401k可以享受到401k账户里的low cost mutual fund(比如vanguard提供了些很好的,所以说尽量别选取些high expense ratio的mutual fund,每年1%的cost adds up 非常巨大),但是IRA账户的投资选择非常自由(mutual fund,ETF,crypto,投资...
A step-by-step tutorial for how to do a backdoor Roth IRA, including links to articles on how to report it on the tax return.