backdoor roth ira question

[radhomer]

I would like to make a backdoor Roth contribution of $5500 for myself and my spouse for tax year 2018 before Apr 15, 2019
I however have a traditional IRA that I am just in the process of transferring to my 401k (or TSP)… This account was NOT zero at the end of Dec 2018 Should I go ahead and contribute for 2018 or would I have to deal with the pro-rata rules?
I believe contributing for 2019 should be no issues…
thanks for your help

[ENT Doc]

Yes, contribute.

[Peds]

Pro-rata matters in the year you convert, not contribute.

[Faithful Steward]

Yes. Contribute for 2018. The conversion to Roth will take place in2019. So, you just need to make sure that you get the Traditional IRA rolled into your new retirement plan by year-end.

One clarification, however. You called it a Traditional IRA. Was this IRA funded through annual IRA contributions? Or from a rollover of an old retirement plan? If it’s from annual contributions, you will need to make sure your new retirement plan will accept it. Some plans will not accept IRAs that contain annual contributions, since a retirement plan affords those funds additional creditor protectionnot afforded annual IRA contributions in a Traditional IRA.

[radhomer]

thank you for the responses...closed my ira accounts and transferred to my TSP.  Now opening a vanguard account

any suggestions on a vanguard etf portfolio?  was thinking VYM and VNQ...

 

 

[Peds]

you should come up with a plan before blindly picking funds.

why not start with VTI and VXUS while you get settled?

[CordMcNally]

radhomer wrote:

thank you for the responses…closed my ira accounts and transferred to my TSP.  Now opening a vanguard account

any suggestions on a vanguard etf portfolio?  was thinking VYM and VNQ…

 

 

Click to expand...

It depends what your desired asset allocation is.