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Rolling Roth IRA into Vanguard

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  • Rolling Roth IRA into Vanguard

    So I am setting up a Vanguard account to roll my wife’s and my Roth from NML. Also, we want to make a Backdoor Roth contribution for 2017 ASAP. Do I have to wait for the NML roll over to happen before doing the Backdoor conversion? Does a rollover count towards our contribution? I would t think so but thought I’d ask. Thanks so much!

  • #2

    • You are going to have to open a Roth IRA to receive the rollover. It does not have to accept the NML r/o before you do the backdoor Roth. Just set up your TIRA account and go for it   (you can also make your 2018 contribution and do a backdoor conversion at the same time, if you want.)

    • A rollover does not count toward your annual contribution.

    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Thanks very much! I will get on that now. Do you know when it comes to my wife’s TIRA can I set it up within my Vanguard account or does she need her own whole Vanguard account?

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      • #4
        IRA stands for Individal Returement account so she will need to set up her own. Fortunately Vanguard makes it pretty easy to do so.

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        • #5
          Yes I suppose that only makes sense. Thanks!

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          • #6
            I have a question along these lines,

            I’m a PGY2 of 4 and want to start a Roth and max it out. I currently have a 401k through Transamerica.  As i look at my retirement account details there is a 401k with 100% in it and a Roth IRA below it with no money in it. I have never intentionally opened a Roth IRA through Transamerica. Does this mean i already have access to a Roth and could contribute to a Roth  through Transamerica? (And possibly set up for auto deduction) Or would it be better to open a Roth through a different company, like Vanguard. After graduation i will need to contribute via the Backdoor so is there a way to do the work now to simplify life downt he road?

            Any one in this situation, and thoughts?

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            • #7




              I have a question along these lines,

              I’m a PGY2 of 4 and want to start a Roth and max it out. I currently have a 401k through Transamerica.  As i look at my retirement account details there is a 401k with 100% in it and a Roth IRA below it with no money in it. I have never intentionally opened a Roth IRA through Transamerica. Does this mean i already have access to a Roth and could contribute to a Roth  through Transamerica? (And possibly set up for auto deduction) Or would it be better to open a Roth through a different company, like Vanguard. After graduation i will need to contribute via the Backdoor so is there a way to do the work now to simplify life downt he road?

              Any one in this situation, and thoughts?
              Click to expand...


              I'm guessing in your situation that it is a Roth 401k.  If this is the case, you could contribute directly to the Roth 401k instead of to the Traditional 401k.  If you are getting a match through your job, this would be your best solution.  If not, I would set up your own Roth IRA and max that out before contributing to anything else.  That way, you control the investment options.  Either way, I wouldn't be contributing to a Traditional 401(k) at your career stage.  You will get very little benefit from putting the money in pre-tax.

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              • #8
                Just a word of caution. It is not clear from your post but there are issues if your wife has a tIRA and you do a backdoor Roth contribution for her.

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                • #9
                  Yes, after digging in a little bit, I can contribute to a pretax and roth 401k plan through my employer as a resident. I will be at my job for 2 more years so now the question is where should i be sending my money. On a salary of about 45k Right now i’m Contributing 15% to the pre tax. 0% to the roth 401k. Which account is more beneficial to contribute to now, and for the next 2 years. Is there a difference? I figure i can afford to contribute another 15% of my income to my retirement in 2018 so:

                  Since the 15% isn’t up to the max 18,5k allowable should i just increase the 401k to 30%

                  Should i put 15% into the Roth 401k and 15% in the 401k

                  Should i put 30% into the Roth 401k for 2018.

                  Second issue, I have 5500 extra in the account right now and i thought of opening a Roth IRA account and contribute that for 2017. Is that the right move for this $? Or is there any other place i should be sending it. The plan is for 2018 i’ll Have another 5500 to contribute as well and 2019.

                   

                  Thanks for suggestions.

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                  • #10
                    On a $45k/yr salary, I recommend 100% Roth 401k. You are in a very low tax bracket, so make the most of it and start the tax-free growth in your Roth. Put as much in as you can afford, according to your budget and goals.

                    I don't know what you mean by having "$5,500 extra in the account right now" and "is there any other place I should be sending it". Are you talking about a retirement account or $5,500 in your bank account that you want to invest? If the latter and if you are investing for the long term then, yes, I recommend the Roth IRA contribution.
                    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                    • #11
                      Thank you for your input. Regarding the last part of the question, I have an extra 5500 in my checking account that i do not need and would like to invest. So my question is where can i invest it to get the most out of money long term. I believe the only way to get it into a retirement style account at this point is to put it in a Roth IRA for 2017.  Although i may have one other hiccup, I plan to file married filing separately since my wife is a high income professional without any debt.  Will this affect my ability to open a ROTH?

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                      • #12




                        Thank you for your input. Regarding the last part of the question, I have an extra 5500 in my checking account that i do not need and would like to invest. So my question is where can i invest it to get the most out of money long term. I believe the only way to get it into a retirement style account at this point is to put it in a Roth IRA for 2017.  Although i may have one other hiccup, I plan to file married filing separately since my wife is a high income professional without any debt.  Will this affect my ability to open a ROTH?
                        Click to expand...


                        Yes.  If you file married filing separately, you won't be able to put anything into a Roth at your income level.  You could bump up your employer contribution to the maximum contribution ($18,500) to get you the same impact though.  Just be mentally prepared for the additional $5,500 to be coming out of your future paychecks.

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                        • #13


                          Although i may have one other hiccup, I plan to file married filing separately since my wife is a high income professional without any debt.  Will this affect my ability to open a ROTH?
                          Click to expand...


                          As long as you do not have a pre-tax IRA in your name, you can contribute $5,500 to a nondeductible TIRA and convert that amount to a Roth IRA. This is the backdoor Roth that you have probably heard so much about. To learn more, see Explaining Backdoor Roth IRAs.
                          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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