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  • Tim
    replied
    Originally posted by Ozarka View Post

    I am about to complete mine in Fidelity but it looks like the appearance or the steps slightly changed from last year. I recall last year having to select to not withhold any taxes on the conversion. I don't see that this year other than a disclaimer that taxes may be owed at a later time. Did you notice that this time?
    I believe you are correct. Did not note. Very possible the transfer program for tIRA to rIRA was changed. A quick call to Fido would document.

    However, since you don't want tax wh on this, it would be a waste of time.

    Leave a comment:


  • Ozarka
    replied
    Originally posted by Tim View Post
    One previous topic was the timing it takes for the contribution and conversion process.

    The best case I just experienced with Fidelity:
    Bank to IRA - entered on Monday 11/22
    Available as of close Tuesday 11/23. Not during the day.
    IRA to Roth conversion on Wedneday and it was immediately available for investment on Wednesday. I neglected to check before market close.
    Roth cash invested on Thursday. Conversion and investment done on 11/24.
    I am about to complete mine in Fidelity but it looks like the appearance or the steps slightly changed from last year. I recall last year having to select to not withhold any taxes on the conversion. I don't see that this year other than a disclaimer that taxes may be owed at a later time. Did you notice that this time?

    Leave a comment:


  • PhysicianOnFIRE
    replied
    You can do it for 2021 before the end of the year.

    If Build Back Better takes it away, you'll want to have the conversion done before the end of the calendar year. If not, you'll have until tax-day April 15, 2022 to get it done.

    Thank you to Peds for putting together the comprehensive FAQ: https://www.physicianonfire.com/backdoor-roth-faq/

    Leave a comment:


  • Tim
    replied
    One previous topic was the timing it takes for the contribution and conversion process.

    The best case I just experienced with Fidelity:
    Bank to IRA - entered on Monday 11/22
    Available as of close Tuesday 11/23. Not during the day.
    IRA to Roth conversion on Wedneday and it was immediately available for investment on Wednesday. I neglected to check before market close.
    Roth cash invested on Thursday. Conversion and investment done on 11/24.

    Leave a comment:


  • Larry Ragman
    replied
    1. No one knows if it will disappear. The House has passed a bill, but the Senate has not and is likely to remove that provision.
    2. If you have the money, do a backdoor Roth for you and your wife each in 2021 (December). If the BDRoth survives, do another set in 2022.
    3. Sure, you can take the full amount for the BD Roth. Just make sure to make the contributions after tax.

    Leave a comment:


  • Theordore
    started a topic Backdoor IRA

    Backdoor IRA

    Hello there,
    I just learned about backdoor IRA, and want to try it this year. My income (couple combined) falls somewhere in the partial deduction category for traditional IRA (between $198k to $208k). Can I still do the backdoor IRA with full $6000 in 2021 and decline any deduction on traditional IRA that I might be eligible?
    Also, is backdoor IRA disappearing from 2022?
    Thanks!

    Theo
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