Skip Ahead Here! 0:00 - How To Do A Backdoor Roth In Fidelity (4 EASY STEPS) 0:35 - Step 1: Contribute to a Traditional IRA 2:44 - Step 2: Invest your contribution 4:23 - Step 3: Move your pre-tax IRAs to your current employer plan 6:01 - Step 4: Convert your Traditional IRA to a Roth IRA
Great video, when I talked with Fidelity this year, they said to just let the cash settle in the traditional IRA then you can immediately move it to your Roth IRA.
Very helpful! Most other videos I’ve seen on this, are to fund your traditional IRA, then transfer cash to Roth IRA, and then to invest money once it’s settled in Roth IRA? So you are saying to invest the money in Traditional IRA and then convert to Roth and few months later?
If RMDs are paid and being paid with a traditional rollover IRA w death benefit (spouse is bene)... Can you see any potential pitfalls in converting to a Roth? (Besides a current year potential tax increase?)
Great video, thanks! Quick question. If after investing your money in the traditional IRA for a few months your balance is more than the $7K limit for the year, you can still rollover the entire balance or you are limited to the $7K?
@@DistrictCapital This wouldn't be a roll over... this would be a roth conversion... you can convert any amount to roth at any time any year... the 7k limit is the limit you can contribute to the traditional IRA in the first place... if that traditional IRA was invested in a penny stock that soar'd to a million dollars, you can convert that million dollars to roth ira without issue... this is elementary 101
not sure if I missed a step....you move your IRA funds from your traditional IRA to your COmpany 401k....but then open a Roth and move your traditional IRa to the Roth......there's nothing in the Trad. IRA as you moved it to the 401k. NO? Did I miss a step?
Thank you for the video! One quick question: If $7000 is put into traditional IRA and I invest that money for couple of month (and lets say I gained $100 from that investment during this months). If I convert entire account balance to roth ira, wouldnt that go over the roth IRA limit of $7000?
If I cannot convert entire account balance and convert up to the limit (7,000). $100 remaining in traditional account, wouldnt this complicate the conversion in the next year because the account will contain both taxable($100+ capital gain) and non-taxable(amount already taxed on W2 that I will put in next year for roth ira conversion)?
Skip Ahead Here!
0:00 - How To Do A Backdoor Roth In Fidelity (4 EASY STEPS)
0:35 - Step 1: Contribute to a Traditional IRA
2:44 - Step 2: Invest your contribution
4:23 - Step 3: Move your pre-tax IRAs to your current employer plan
6:01 - Step 4: Convert your Traditional IRA to a Roth IRA
In 2018 the IRS indicated that the use of a backdoor Roth IRA conversion process does not violate the step transaction doctrine.
Great video, when I talked with Fidelity this year, they said to just let the cash settle in the traditional IRA then you can immediately move it to your Roth IRA.
What do I do with the stocks I already have in a traditional IRA in order to be able to do the back door Roth ira
Very helpful! Most other videos I’ve seen on this, are to fund your traditional IRA, then transfer cash to Roth IRA, and then to invest money once it’s settled in Roth IRA? So you are saying to invest the money in Traditional IRA and then convert to Roth and few months later?
Thanks for your question. Yes, that's correct. This will help you avoid the US step transaction doctrine.
If RMDs are paid and being paid with a traditional rollover IRA w death benefit (spouse is bene)... Can you see any potential pitfalls in converting to a Roth? (Besides a current year potential tax increase?)
Great video, thanks! Quick question. If after investing your money in the traditional IRA for a few months your balance is more than the $7K limit for the year, you can still rollover the entire balance or you are limited to the $7K?
Great question! You can only roll over the Roth IRA contribution limit for that year, so for 2024 that is $7k. Thanks!
@@DistrictCapital This wouldn't be a roll over... this would be a roth conversion... you can convert any amount to roth at any time any year... the 7k limit is the limit you can contribute to the traditional IRA in the first place... if that traditional IRA was invested in a penny stock that soar'd to a million dollars, you can convert that million dollars to roth ira without issue... this is elementary 101
Are you planning to use the backdoor Roth IRA strategy this year?
not sure if I missed a step....you move your IRA funds from your traditional IRA to your COmpany 401k....but then open a Roth and move your traditional IRa to the Roth......there's nothing in the Trad. IRA as you moved it to the 401k. NO? Did I miss a step?
Thank you for the video! One quick question: If $7000 is put into traditional IRA and I invest that money for couple of month (and lets say I gained $100 from that investment during this months). If I convert entire account balance to roth ira, wouldnt that go over the roth IRA limit of $7000?
If I cannot convert entire account balance and convert up to the limit (7,000). $100 remaining in traditional account, wouldnt this complicate the conversion in the next year because the account will contain both taxable($100+ capital gain) and non-taxable(amount already taxed on W2 that I will put in next year for roth ira conversion)?
@@ygko9620 you can covert the entire amount but you will have to pay gains on that 100$, that is what my fidelity person told me
@@ygko9620following