My apologies if this is a dumb question...I just want to be sure I'm prepared. I'm planning to fully fund a backdoor Roth this year, but it will be my first time doing so. I've read WCI's post going through the steps, but my main question involves what happens for the 2nd year you do the conversion.
As an example, I'm planning to open a traditional IRA with Vanguard one day with $5500, then opening a Roth account at Vanguard and converting it the next day. During the following year when I convert again, I understand that I will just add $5500 to the same traditional IRA account (which has been sitting with a balance of $0 for a year) and then convert the next day. How does the conversion work at that point since I will have a Roth account opened at that point? Does the money get converted into the same Roth account that's been growing for a year or does another Roth account have to be opened for each conversion? That doesn't seem to make sense because I can't imagine needing 30 different small Roth accounts over a 30 year period, but just want to know what to expect and how that conversion option appears on the site.
Thanks for any information!
As an example, I'm planning to open a traditional IRA with Vanguard one day with $5500, then opening a Roth account at Vanguard and converting it the next day. During the following year when I convert again, I understand that I will just add $5500 to the same traditional IRA account (which has been sitting with a balance of $0 for a year) and then convert the next day. How does the conversion work at that point since I will have a Roth account opened at that point? Does the money get converted into the same Roth account that's been growing for a year or does another Roth account have to be opened for each conversion? That doesn't seem to make sense because I can't imagine needing 30 different small Roth accounts over a 30 year period, but just want to know what to expect and how that conversion option appears on the site.
Thanks for any information!
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