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Backdoor Roth Taxes

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  • Cytogal
    replied
    Thanks everyone!

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  • The White Coat Investor
    replied
    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.

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

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  • jfoxcpacfp
    replied




    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.
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    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.

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  • MaxPower
    replied
    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.

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  • Cytogal
    started a topic Backdoor Roth Taxes

    Backdoor Roth Taxes

    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.
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