I just rolled over all my 401Ks to a rollover IRA in Fidelity. I was wondering if it makes sense to open another IRA account in Fidelity and fund it with my post tax money and roll it over to Roth IRA (backdoor) before the April 18th deadline. Will there be any issues with multiple IRA accounts with Fidelity? Also, to make contributions to a backdoor Roth IRA account after the first one, does one have to keep rolling over from IRA to Roth every year?
u can do it online. no need to call
Why did you rollover all of your 401Ks? Although IRAs offer more investment flexibility, 401Ks offer more protection from lawsuits. You should have a mix of both.
Who are you expecting to sue you?
Look up the pro-rata rule that applies when doing a backdoor Roth. If you rolled over your pretax 401(k) into a Traditional IRA, you just shot yourself in the foot. It doesn’t matter how many Trad IRA accounts you have. In the eyes of IRS they are all one account. While doing a backdoor, you have to roll over a proportionate amount of pretax and posttax money from your Trad IRA.
This is one of the most important point, not realized by many until they make rhe mistake.
Look into the pro rata rule. There are resources online to explain it.
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I have multiple accounts at Fidelity. Give them a call and they’ll help you set up what you need. (But also be open to their suggestions as to how you might be able to do it better.)