Announcement

Collapse
No announcement yet.

Backdoor Roth IRA - Did I screw up?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Backdoor Roth IRA - Did I screw up?

    Hello WCI members,

    First, thank you for reading my post.  I just started a Fidelity tradition IRA last week and transferred $5.5k (for 2017) so I can convert it to Roth IRA.  However, Fidelity has a waiting time of 4 days.  I was being impatient and transferred another $5.5k (for 2018) into the newly opened traditional IRA account.  Now it has $11k.   Did I messed it up for not waiting to convert the first $5.5k?  Can I convert $11k in the traditional IRA to Roth IRA?

    Thanks in advance.

    HN

  • #2
    you'll have to pull it back out but it shouldn't be the end of the world i don't think.

    you certainly can't covert 11k.

     

    Comment


    • #3
      Thanks MPMD!  I called Fidelity to reverse the transfer by completing the excess contribution form online.

      Comment


      • #4
        Or one contribution (and subsequent conversion) can be for 2017 and the other for 2018.

        Comment


        • #5
          You were ok with what you did. You can convert an unlimited amount, you just can't contribute more than $5,500/year ($6,500 if age 50+). It's pretty common to convert 2 years at once for simplicity.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

          Comment


          • #6
            As long as you marked your contributions for 2017 and 2018 properly, there is absolutely nothing wrong with converting both at once.

            Comment


            • #7




              you’ll have to pull it back out but it shouldn’t be the end of the world i don’t think.

              you certainly can’t covert 11k.

               
              Click to expand...


              Sorry...I believe that's incorrect on both accounts :-( as long as your contributions were $5,500 or less and were explicitly marked for the correct tax year, then they're fine. There is no conversion limit as long as the amount contributed is appropriate. There is no penalty to contributing a 2017 and 2018 contribution at the same time.




              Thanks MPMD!  I called Fidelity to reverse the transfer by completing the excess contribution form online.
              Click to expand...


              I beg your pardon, but I think this was unnecessary. As I stated, as long as $5,500 was contributed for 2017 and $5,500 was contributed for 2018, there was no excess contribution. I actually did this exact thing in 2017; made my 16 and 17 contributions on the same day (technically the 17 one a few minutes before the 16 one), and converted both at the same time in a single conversion. It all comes out in the wash.

              Comment


              • #8







                you’ll have to pull it back out but it shouldn’t be the end of the world i don’t think.

                you certainly can’t covert 11k.

                 
                Click to expand…


                Sorry…I believe that’s incorrect on both accounts ???? as long as your contributions were $5,500 or less and were explicitly marked for the correct tax year, then they’re fine. There is no conversion limit as long as the amount contributed is appropriate. There is no penalty to contributing a 2017 and 2018 contribution at the same time.




                Thanks MPMD!  I called Fidelity to reverse the transfer by completing the excess contribution form online.
                Click to expand…


                I beg your pardon, but I think this was unnecessary. As I stated, as long as $5,500 was contributed for 2017 and $5,500 was contributed for 2018, there was no excess contribution. I actually did this exact thing in 2017; made my 16 and 17 contributions on the same day (technically the 17 one a few minutes before the 16 one), and converted both at the same time in a single conversion. It all comes out in the wash.
                Click to expand...


                Apologies all around I didn't see the dates!

                Comment


                • #9
                  Thank you everyone for your prompt responses.  I'll cancel my request to transfer the money back.  I appreciate your help.

                  Comment

                  Working...
                  X