first time poster here
I opened a traditional IRA at Fidelity in Dec 2022, contributed 6K and did a conversion a week later to a newly opened Roth IRA.
On Dec 30, 2022, I received a dividend of $5.84 (SPAXX) into my traditional IRA account although the account was completely empty prior to that since I had converted the entire 6K out of it on Dec 16.
Now I want contribute for 2023 and do the same process but have the problem of breaking the pro-rata rule since I have $5.84 in my tIRA.
I'm sure this has been answered a million times but I'm not completely getting it.
Do I still fund the tIRA w/ 6500 (max contribution for 2023) and then convert the entire balance of 6505.84 into my Roth IRA? Then I'd just have to fill out form 8606 correctly for tax year 2023, which I'd be completing sometime before April 2024?? Thanks in advance!
I opened a traditional IRA at Fidelity in Dec 2022, contributed 6K and did a conversion a week later to a newly opened Roth IRA.
On Dec 30, 2022, I received a dividend of $5.84 (SPAXX) into my traditional IRA account although the account was completely empty prior to that since I had converted the entire 6K out of it on Dec 16.
Now I want contribute for 2023 and do the same process but have the problem of breaking the pro-rata rule since I have $5.84 in my tIRA.
I'm sure this has been answered a million times but I'm not completely getting it.
Do I still fund the tIRA w/ 6500 (max contribution for 2023) and then convert the entire balance of 6505.84 into my Roth IRA? Then I'd just have to fill out form 8606 correctly for tax year 2023, which I'd be completing sometime before April 2024?? Thanks in advance!
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