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  • Pro Rate rule

    * Pro-rata
    Hi everyone, I am new to all these IRAs, 401(k) this year so please bear with me if this is a stupid question. As I was just tidying up my accounts for the year end, I noticed the below.
    I have a traditional IRA account with E- trade that I just opened this year. Roth IRA account is also with them. I contributed $6k into traditional, I left it in cash and it was about a week before I could convert to Roth. At the time of conversion, it showed that all of those $6k are converted to Roth. Today, when I opened the accounts, it showed a balance of $0.01 in traditional IRA. Because of the pro-rata rule, I know that the balance should be $0 at the year end. What can I do about this 1 cent in my traditional IRA?

    Last edited by margipatel001; 12-29-2021, 10:20 AM.

  • #2
    Don't worry about it

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    • #3
      Nothing to worry about. Prorata means just that. This is a rounding error and will not affect the Backdoor Roth at all. If your custodian allows, you could just convert the $0.01 and it would round down to $0.00 taxable income.

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