1099R for backdoor roth conversion seems off Hey all, just got my 1099R from fidelity for 2024 tax year. I did backdoor roth conversion the past two years. My 1099R from 2023 had ~$6500 in distributions but my 1099R for my traditional IRA from 2024 just has a $1 and my 1099R for my roth IRA has a distribution of $35. Did I do something wrong during the conversion? This is my first time doi…

Help me understand our Mega Backdoor Roth situation My wife is starting a new job, that has a 401k plan that (per my understanding) allows one a type of Mega Backdoor Roth contributions. Our personal financial/tax situation: We will both likely max out our (regular) 401k contributions and HSA contributions We will also max out our Roth IRAs (via backdoor Roth IRA. We have no other funds in non-R…

Backdoor Roth mess-already put on money last year Hi, Can someone guide me with this? I maxed out my Roth IRA last year, realized now that we (spouse and I) are not eligible due to our AGI. What can I do now to fix this? Thanks submitted by /u/gondhal

Backdoor Roth IRA Conversion / Trad 401k Rollover Sequence Say someone completes a Backdoor Roth IRA conversion at the beginning of the year. At that time, they have no traditional IRA balance before or after the conversion. Then later on in the year, they switch jobs and roll over their traditional 401k to a traditional IRA. In that case, they have a traditional IRA balance at the end of the year. Does…

Messed up backdoor Roth. Am I hosed? Early 2024 I maxed out my Vanguard Roth IRA for the year. I then unexpectedly made more than the max income limit. A few months ago I recharacterized the contribution to a new vanguard traditional IRA, and then did a rollover back to my Roth IRA. I just now realized that the pro rata rule applies to me because I have 50k in a fidelity rollover I…

Must I pay taxes on Backdoor Roth IRA if Trad IRA was funded with after-tax dollars? Early 50s, earning over the max for regular Roth IRA, but trying to add to retirement funds. I’m maxing out yearly contributions to my 401k (employer also matches 4%), and I’m looking to put more money away for retirement in the most beneficial way. I don’t have any IRA at the moment. So, I was considering doing Backdoor Roth. My understanding:…

Roth IRA or Backdoor Roth? Currently I make under the Roth IRA max income limit. But later on in the year, around October, my fiancé and I will be getting married and our combined income will be in the “reduced amount” Roth IRA contribution group and we’re planning on filing jointly. The reduced Roth contribution should come out to $5600 for our incomes jointly. I’m think…

Wondering about utilizing a backdoor Roth Household income: $150k after tax Income is recently reduced due to partner taking time off work while pregnant Annual spending: $90k $280k in 401k’s $100k in company stock $800k in taxable investment account Assuming that I max our 401k each year, should I be moving money from our taxable investment account to a Roth IRA? Would that be a smart …

Backdoor Roth IRA advise I am over the income limit for IRA contribution. I have a 401k and no IRA. Wife has 410k and 401k rolled over to IRA from previous employer. I am 51 years old. Does it make sense for me to open a backdoor Roth IRA now? I saw that for 2024 I have time till April to do this. Is this a straight forward this to do .. contribute to IRA and immediatel…

Can someone please explain backdoor Roth accounts like I’m 5? Household MAGI is over 240k. How does the backdoor Roth work? I understand why someone might want to do it (tax free growth and withdrawal), but I don’t understand how you actually do it. Some of my questions include: How much do you convert to Roth each year? What do you pay in taxes to do the conversion? What is this rule about traditional I…

401k delayed mega backdoor, what did I do? About 8 years ago I made a mistake for a few paychecks and made and after tax contributions to my 401k at Fidelity. I recently started at a new job that also uses Fidelity and decided to have my old 401k account consolidated. My old 401k did not allow in service or in plan conversions at the time. Now, the new plan does. So they rolled over the …

Confusion around Backdoor ROTH and Pro-Rata Rule So I recently got a new job which I will be starting in early 2025, this job will put my wife and I over the income threshold for contributing to our ROTH IRA accounts that we have been contributing to for some time. I am aware of the Backdoor ROTH Strategy, but I have some questions / confusion around the pro-rata rule and how to avoid paying t…

Any disadvantage to backdoor Roth IRA? I may or may not hit the income limit for Roth IRA contributions next year depending on how raises/bonuses shake out. I won’t know for sure until February. Starting a traditional ira to do the backdoor method seems like the better bet in case I do hit those numbers. Is there any disadvantage or potential problem with doing this if I don’t happe…

When is mega backdoor not recommended for after-tax 401k contribution ? Searched online but most answers are focussing on pre-tax contribution or whether their plan even allows mega backdoor conversion. I am not worried about those. Rather want to know only for the after-tax component of 401k. If plan allows, why would you not do a Roth conversion of your after-tax contribution? As far as I understand, after-tax con…

Backdoor roth rules clarification So far due to post-graduate training my SO and I have been at income levels we could contribute directly to Roth IRA and have done so. This year I transitioned from post-grad training and income increased from 35k to 142k in August. SO makes 110K so we will be beneath income limits this year but will be over limit next year. Unfortunately SO emp…

Rolling over old 401k, already did Roth backdoor this year, what can I do? Hey, My income is above the threshold for direct Roth IRA contributions. In January 2024, I funded a traditional IRA and backdoored it into Roth immediately as part of my yearly investment strategy. I changed jobs March 2024. They just sent my old traditional 401k into an account listed as a rollover IRA. What do I need to do next? Can I leave i…

Does having a rollover IRA prevent me from doing a backdoor Roth? I know with the pro rata rule that having a traditional IRA doesn’t allow you to do a backdoor Roth. My understanding is that a rollover IRA is a traditional IRA so that would still apply. The assumption here is that I’m above the Roth IRA income limit submitted by /u/thefinalburner97

Backdoor ROTH for SAHM spouse? Hi, folks. I am the sole breadwinner in our family, and I am covered by a workplace retirement plan. I am contributing to a backdoor Roth since my IRA contributions are non-deductible. It looks like my wife’s spousal IRA contributions are ALSO non-deductible since the source of contributions comes from a job covered by a workplace retirement p…

Married filing jointly but different incomes and Backdoor roth IRA? We are filing jointly but my income is >200k and my spouse’s is 100k. I have done a backdoor roth ira in the past. Would they need to do the same on their end since we are filing jointly? Thank you! submitted by /u/Ek_Ko1

Reverse roll-in IRA to 401k to take advantage of backdoor Roth? HHI above any IRA (with 401k) or Roth IRA limit. $900K in rollover IRA invested in zero-fee Fidelity funds. I have an option to reverse roll-in this balance to a new 401k. Doing so would allow me to take advantage of Roth backdoor with after-tax IRA contributions for both me and my wife while minimizing tax impact (would max both yearly and have…