A backdoor Roth IRA really is that simple. Which makes the rest of this post rather amazing actually. But sad experience has convinced me that this post must be written. Perhaps the biggest mistake is not doing your Roth IRA through the backdoor when your income was so high that you had...
If you are already off by one year, it depends on whether you’re handling the contribution part or the conversion part right now. If you contributed to a Traditional IRA for 2023 in 2024 or if you recharacterized a 2023 Roth contribution to Traditional in 2024, please followSplit-Year Ba...
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...
Having said that, I started after-tax contributions to my company’s 403(b) in 2021. They (Vanguard) perform an in-fund “roll-over” to my Roth account for me as soon as the deposit hits the account so I don’t have to worry about any earnings which has been great. Unfortunately,...
I’m not familiar with the Vanguard description labels. It’s not clear to me why your outgoing is different than your incoming. Shouldn’t the amount be the same when you move money from one pocket to another? I’m assuming you originally contributed $6,000 to your Roth IRA, and you...