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Backdoor Roth IRA

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  • koenbro
    replied
    Excellent, that's exactly what I needed to know! Thank you Johanna.

    Leave a comment:


  • jfoxcpacfp
    replied
    You'll owe taxes on the back-door per the pro-rata rule. Does your employer plan accept roll-ins? If so, let Vanguard untangle the accounts, roll the TSP portion over to your 401k, then convert to a back-door Roth.

    Leave a comment:


  • koenbro
    started a topic Backdoor Roth IRA

    Backdoor Roth IRA

    I need help sorting out my Traditional IRA and convert it to a Roth, as I realize I made a mistake with it. I had ~10K in my TIRA at Vanguard until one month ago, when I rolled into it ~90K from TSP (old federal gov't job).  Then I added $5,500 for 2015. Now I would like to add $5,500 for 2016 and roll it over into my RIRA. In reading about roll-overs, the TSP money and the TIRA are treated differently and IIUC there will be a lot of taxes (I'm in the 33% marginal fed tax rate). I called Vanguard, and they told me they might be able to separate the pretax (TSP) money into a roll-over IRA. I am tempted to do that. Can I then roll-over the moneys from the trad IRA into my Roth without exorbitant taxes? Many thanks.
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