I'm trying to do backdoor-Roth contribution of which there's a limit of 7k for 2024.
So I transferred exact 7k USD from my bank account (after-tax money) into the trad-IRA.
But the trad-IRA already had some small amount of ~$10 change remaining from gains accumulated from temporary transfers over the last few years.
- question, How do I do backdoor-Roth contribution of 7k for 2024 in this case then, -- can I move all the $7010 (7k + 10 USD) into Roth-IRA so trad-IRA has 0 balance remaining, or do I need to move exactly $7000 (7k) from the trad-IRA to Roth-IRA? I"m concerned about this due to pro-rata rule.
- Since tax on small change of $10 is fairly small, can I just contribute all the money $7k+10 to the Roth-IRA, even though it's more than 7k limit?
So I transferred exact 7k USD from my bank account (after-tax money) into the trad-IRA.
But the trad-IRA already had some small amount of ~$10 change remaining from gains accumulated from temporary transfers over the last few years.
- question, How do I do backdoor-Roth contribution of 7k for 2024 in this case then, -- can I move all the $7010 (7k + 10 USD) into Roth-IRA so trad-IRA has 0 balance remaining, or do I need to move exactly $7000 (7k) from the trad-IRA to Roth-IRA? I"m concerned about this due to pro-rata rule.
- Since tax on small change of $10 is fairly small, can I just contribute all the money $7k+10 to the Roth-IRA, even though it's more than 7k limit?
Statistics: Posted by bogle005 — Tue Jul 23, 2024 12:14 am — Replies 5 — Views 303