Backdoor Roth Taxes

[Cytogal]

Hi- I did something dumb. Put the 5500 in tIRA, forgot about it and it "earned" $0.03.  Did my Roth conversion of the 5500, now there is 3 cents left over in the tIRA.  What do I do?  Leave it and when tax time comes it will just be rounded down to 0? Does this matter at all?  Any suggestions? Thanks.

[MaxPower]

Could just leave it. Report the $.03 earnings on your taxes and it will not affect anything. Same thing happened to me earlier this year and I freaked out. Nothing to worry about.

[jfoxcpacfp]

Cytogal wrote:

Hi- I did something dumb. Put the 5500 in tIRA, forgot about it and it “earned” $0.03.  Did my Roth conversion of the 5500, now there is 3 cents left over in the tIRA.  What do I do?  Leave it and when tax time comes it will just be rounded down to 0? Does this matter at all?  Any suggestions? Thanks.

Click to expand...

It doesn't matter at all. Convert it all or leave it there until next year so you won't have to re-open the account.

[TheGipper]

Amazing how common this is and how much stress it causes the newbie backdoor converter (myself included on my first!)   

[The White Coat Investor]

I've gotten this email/comment/question at least a dozen times. You don't report pennies on your taxes. So 3 cents = $0 as far as the IRS is concerned.

[Cytogal]

Thanks everyone!