Backdoor Roth - Retirement Question

[Dejashoot]

Is anyone doing a yearly backdoor Roth? If so, are you doing the IRA and conversion online or via a broker? If online, who are you using?

[Merc]

I'm no help, was hoping someone else would've chimed in though.

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[Black Ice]

Backdoor Roth - Retirement Question

Is anyone doing a yearly backdoor Roth? If so, are you doing the IRA and conversion online or via a broker? If online, who are you using?

Broker. I cut him a check every January for the amount needed to max it out.


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[mikemorvan]

Please explain "backdoor IRA". I think i may be in the process of doing this right now via a broker. Just haven't heard the term before.

[Merc]

Please explain "backdoor IRA". I think i may be in the process of doing this right now via a broker. Just haven't heard the term before.

It is specific to ROTH IRAs since they have an income limit. Essentially you contribute to a traditional (which due to income limits you can't deduct for taxes) and then you can convert your traditional IRA to a ROTH to let your money grow tax free.

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[mikemorvan]

Yes. I'm doing that right now. Expecting check from Fidelity in the next few days to go to JP Morgan to fund Roth IRA.

[JonBoy]

Is anyone doing a yearly backdoor Roth? If so, are you doing the IRA and conversion online or via a broker? If online, who are you using?

My financial advisor has us doing the IRA & conversion route. He manages all the paperwork we just write the checks

[Texans42]

Please explain "backdoor IRA". I think i may be in the process of doing this right now via a broker. Just haven't heard the term before.

Loophole for Roth IRA transfers from conventional IRA’s. Roth Income cap is I think 122k single 190k married.

[ntxshooter]

Do lump sum at beginning of the year online. Vanguard is where I keep my account. Goes in as traditional IRA, then once posted, I convert it to Roth. They have a selection for doing the backdoor roth - easy to do

[MossyRockRanch]

I use TD and they handle all the paperwork .

[mdnabors]

Loophole for Roth IRA transfers from conventional IRA’s. Roth Income cap is I think 122k single 190k married.

So the max is $190k gross income (married) or you cannot participate correct?

[Cantcatch5]

So the max is $190k gross income (married) or you cannot participate correct?

Yes. It is actually a tad higher...I am remembering $193k but wouldn’t swear to it.

[44mAG]

Yep, I use Vanguard and it's very easy online. Only kicker is you have to wait the couple of days for the money to officially come available in your traditional IRA settlement fund. Once it is, you can quickly convert to the Roth before accumulating any interest.

The ~$190K limit means that you cannot contribute straight to a Roth IRA, therefore, you have to do the backdoor.

[Dejashoot]

So the max is $190k gross income (married) or you cannot participate correct?

Correct. My understanding is you can contribute to a regular IRA with no income limit. Once you have money in a traditional IRA you can roll it over to a Roth IRA pay applicable tax and your money is tax free on original investment and any growth is tax free. There are some other advantages also. If married filing jointly over $203,000 AGI you can’t directly contribute to a Roth IRA.

[Cullstuff]

Great topic. I am also converting chunks of my pre-tax 401k (current employer) to my ROTH 401k. The employer match is pre-tax so I have to keep converting it every year. For those still working that’s something to look into as well. ROtH 401k is a lot more common now


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