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pro rata violation?

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  • pro rata violation?

    Hi All,

    I'm preparing to fund my backdoor roth IRA for 2019. Can I place $6000 into my Vanguard Federal Money Market Fund (settlement fund) today in order to have the funds available to invest on 1/1/2019? Would this be considered a pro rata violation for the back door roth for 2018 since funds would be in the traditional IRA on 12/31/2018?

    thanks.

  • #2
    I assume you’ve already made a 2018 $5500 IRA contribution?

    Either way you cannot make a 2019 contribution until 1/1/19.

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    • #3
      You can't contribute more than $5500 to your IRA in 2018, so assuming you've funded your backdoor Roth for 2018, you cannot do this. Pro rata doesn't really apply.

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      • #4
        Just wait a month.

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        • #5
          Thanks for the replies. Will hold off transferring funds until the new year.

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          • #6




            Hi All,

            I’m preparing to fund my backdoor roth IRA for 2019. Can I place $6000 into my Vanguard Federal Money Market Fund (settlement fund) today in order to have the funds available to invest on 1/1/2019? Would this be considered a pro rata violation for the back door roth for 2018 since funds would be in the traditional IRA on 12/31/2018?

            thanks.
            Click to expand...


            nope. doesnt work that way.

            we all do it jan 2nd. join the party.

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