Backdoor Roth

Dec 30, 2018 8 Comments

Need some help here guys!

1. I've contributed 5500 to traditional IRA this year. Do I need to do the conversion this year or is it the same if I do it next year along with next year's 5500 (convert 11000 in one go)?

2. How do I do it on the Fidelity platform? Is it just open both accounts, load 5500 post tax to traditional IRA, then transfer it to Roth IRA? I can't figure out how to do the transfer and their instruction page tells me "you do not have any eligible Fidelity IRA accounts to convert to a Roth IRA." - what is an eligible Fidelity IRA?

3. Uber people - we can't mega backdoor Roth, right? If you managed to do it, how?

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TOP 8 Comments
  • Microsoft Noli88
    The same. Except tax time will be confusing if the contribution and conversion is in different years. Look it up. You need both accounts opened on Fidelity. There is a button and a few clicks
    Dec 30, 2018 4
    • Zillow Group jc04
      You can't say for certain, but if someone is asking about back door roths, then they probably can't deduct for the traditional contribution, so they'd only have a functional tax change when doing the conversion.
      Dec 30, 2018
    • OP
      I couldn't find that button. Fidelity has one of the worst web UI I've ever seen in any category.
      Dec 30, 2018
    • Zillow Group jc04
      ...better than vanguard
      Dec 30, 2018
    • Microsoft Noli88
      You need to keep track of all your non deductible traditional IRA contributions and declare them every year. I'm talking about the declaration during filling. Look up online about this. Thefinancialbuff perhaps. It has detailed explanation about the legality, steps, how to do the filing in TurboTax. Regarding Fidelity, if you are confused, call Fidelity. Your company may also have a dedicated number, but the general number also work. They are very helpful.
      Dec 30, 2018
  • Zillow Group jc04
    1. You can do it anytime, this year or next.
    2. Fund traditional IRA, open Roth IRA, transfer funds from traditional to Roth. If you can't do it online, call Fido.
    3. No idea.
    Dec 30, 2018 1
    • OP
      Thanks! Calling them would have been my next course of action
      Dec 30, 2018
  • Uber 🤔
    Dec 30, 2018 0

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