also in 2023, the value grew to $6,700. You have no other traditional, SEP, or SIMPLE IRA after you converted your traditional IRA to Roth. You did not roll over any pre-tax money from a retirement
Even given that, the backdoor Roth IRA strategy can have advantages—especially for high earners. Roth IRAs don’t have RMDs, so you can hold them forever and pass them on to your heirs. Another advantage is that a backdoor Roth contribution can mean significant tax savings over the decades...
Now we're starting to get into where you're actually breaking the rules. Line 6 of IRSForm 8606(the form on which the Backdoor Roth IRA is reported) requires you to list the total you have in traditional IRAs, rollover IRAs, SIMPLE IRAs, and SEP-IRAs (but not Roth IRAs, 401(k)s,...
60-day rollover:your employer issues a distribution from your 401(k) that you then have 60 days to put into your Roth IRA to avoid paying the 10% early withdrawal penalty. Your employer will probably withhold 20% of your distribution, as per IRS rules. ...