I did the usual backdoor Roth transaction in early Jan this year, $7,500. The expectation was that no taxes would be due from this.
Later on, I received notice that Vanguard was selling its i401k business to Ascensus, so I rolled over my small (approx. $22,500) traditional i401k to a roll-over traditional IRA to keep the investment at Vanguard. At the time I was happy with my decision.
Later on, it occurred to me that this roll-over might mess up my otherwise tax-free backdoor Roth from earlier this year.
Does the fact that midway this year, I began to have a traditional IRA with a $22,500 balance mean that my backdoor Roth in Jan will be taxable this year?
If so, how would I calculate the amount of tax due?
If tax will be due, any way to fix this before year-end?
Later on, I received notice that Vanguard was selling its i401k business to Ascensus, so I rolled over my small (approx. $22,500) traditional i401k to a roll-over traditional IRA to keep the investment at Vanguard. At the time I was happy with my decision.
Later on, it occurred to me that this roll-over might mess up my otherwise tax-free backdoor Roth from earlier this year.
Does the fact that midway this year, I began to have a traditional IRA with a $22,500 balance mean that my backdoor Roth in Jan will be taxable this year?
If so, how would I calculate the amount of tax due?
If tax will be due, any way to fix this before year-end?
Statistics: Posted by renter — Sun Oct 06, 2024 8:35 pm — Replies 3 — Views 158