What to do with brokerage bonus deposit when doing backdoor Roth?

[kev777zero]

I opened a traditional IRA under Fidelity to so that I can transfer to my Roth IRA. However Fidelity is doing a $100 deposit bonus whenever an account is opened and money is deposited. What do I do with that extra $100? do I transfer $6100 then this year to my Roth (will that incur penalty)? or keep the $100 in the account and just contribute $5900 to IRA next year?

[jacoavlu]

I opened a traditional IRA under Fidelity to so that I can transfer to my Roth IRA. However Fidelity is doing a $100 deposit bonus whenever an account is opened and money is deposited. What do I do with that extra $100? do I transfer $6100 then this year to my Roth (will that incur penalty)? or keep the $100 in the account and just contribute $5900 to IRA next year?

do the first thing. no penalty. you’ll pay tax on the $100 conversion