Backdoor Roth IRA Troubles

[hankbb02]

This is the first year I did the backdoor roth. I opened a new traditional IRA at Vanguard and contributed 5500. By the time it cleared and prior to rolling it into my Roth IRA I earned .37 cents in dividend. Now I have this .37cents sitting there with no idea what to do with it. Anyone have any ideas?

[DMFA]

hankbb02 wrote:

This is the first year I did the backdoor roth. I opened a new traditional IRA at Vanguard and contributed 5500. By the time it cleared and prior to rolling it into my Roth IRA I earned .37 cents in dividend. Now I have this .37cents sitting there with no idea what to do with it. Anyone have any ideas?

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Whatever you want.  Values are rounded to the nearest dollar when reported to the IRS.  Did you not convert the entire account balance so it would end up in the Roth?  Either way, still rounds to $5500.

So at $0.37 sitting in a TIRA, you'd have to gain $0.13 for it to be rounded to $1...and I just don't think that you'll gain 35% in the money market fund this year. ;-)

[Dr. Mom]

Just call Vanguard and ask them to roll it over too.  Schwab did it for me.

[Craigy]

I don't think you even have to call.  Just a few clicks.

[hankbb02]

I called and then did it online. It was a lot bigger deal in my head than it turned out to be. Thanks for your help!

[DMFA]

hankbb02 wrote:

I called and then did it online. It was a lot bigger deal in my head than it turned out to be. Thanks for your help!

Click to expand...

Sometimes nothing beats talking to a human.  Major exception: the drones at Federal student loan servicers.

[Peds]

next time make sure you click convert 100%, not in dollars.

[MaxPower]

I asked this same question about two years ago when I did my first backdoor Roth IRA. The amount they care about and is limited is the contribution amount, not the conversion amount.