Hello - for FY 2024, I contributed $8000 to Traditional IRA, and then from Traditional IRA to Roth IRA (as part of backdoor IRA) on fidelity platform .. however, i see an interest of $1.09 deposited into the Traditional IRA since Fidelity invests into SPAXX money market.. so the total amount in my Traditional + Roth IRA = $8001.09 .. i'm eligible to contribute $8000 for 2024 (since i'm over 50) .. will this cause any issues in FY 2024 tax filing ? How to resolve this ? Should i just go ahead and transfer $1.09 to my Individual account ? tia! #ustax2024 #backdoorira #fidelity #iracontributionover50 #tax
You can do a separate Roth conversion for the 1.09 and be done with it now or just wait until next year You’ll need to pay taxes on the 1.09 so it’s best to do now and let grow tax free for longer but the amount is soooooo small it’s your call.
i've already contributed $8k for 2024 .. i dont believe i can contribute the extra $1.09 ..
You aren’t contributing to the Roth. You made an 8k contribution to traditional Ira. That Ira made some money. You can convert some or all of your traditional to Roth whenever you want. There are a bunch of rules around Roth conversions you may want to look into. If you only have 1 IRA and 1 Roth it’s unlikely any apply to you though.
Need to file form 8606 and pay taxes on the 1.09. Very common if you do backdoor Roth
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1.09 is gains. The limit applies to contributions, not to amount in your IRA.
ok, though i dont want any amount in Traditional IRA since i want to do Backdoor IRA every year