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Backdoor Roth IRA + 403b pre and post tax rollover!

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  • Backdoor Roth IRA + 403b pre and post tax rollover!

    Hello everyone,

    I have a situation I wanted to run by everyone. I plan to do a Vanguard backdoor roth for 2021. (I did one for 2020 already).

    I also have a 403b at a job I will leave in June. It contains 40k in post-tax (Roth 403b) and 4k in pre-tax funds. When I leave, I plan to roll it over to Vanguard into a traditional rollover IRA and Roth rollover IRA. I then plan to convert the 4k in the traditional IRA to a roth IRA and then have all the roth IRA funds combined together.

    I assume I will be taxed on the 4k that is converted from the tradIRA to Roth IRA, but not on the backdoor roth because that is nondeductible and done with post-tax dollars.

    Are my assumptions correct? Does this seem like an appropriate thing to do?

    Thank you for all the help!

  • #2
    - conversion depends on marginal rate
    - if thats your plan it can all be directly rolled over to the Roth IRA
    - as long as no tIRA remains on 12/31 then it has nothing to do with bdrIRA

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    • #3
      Good to hear from you! Thank you for the help. Yep, I understand the conversion will be at whatever marginal rate my income will be at for the 2021 year.

      I am hoping to all end up rolling it into the same roth, the backdoor, the roth rollover and the trad rollover converted to roth.


      By the last statement, you mean as long as there is no tradIRA balance by 12/31, it won't affect the backdoor at all (like it usually would if you had a trad IRA balance somewhere).

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