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$5500.32 Backdoor Roth

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  • $5500.32 Backdoor Roth

    Hi All -

    Did my first Backdoor Roth IRA this past week with Vanguard (thank you, WCI, for tutorial). Followed the steps and converted as soon as the online platform would allow, yet still gained 32 cents by the time conversion went through.

    Should I report these 32 cents as income?  Will it come back to haunt me?  Or is it simply a matter of rounding down when doing taxes?

    Is there a way to avoid this in the future so that the conversion is a nice, tidy $5500.00 even?

    Thank you.

     

  • #2
    It'll round down to $5500. No worries!  

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    • #3
      https://www.whitecoatinvestor.com/pennies-and-the-backdoor-roth-ira/
      Helping those who wear the white coat get a fair shake on Wall Street since 2011

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      • #4
        Yes report it. 32 cents rounds to the nearest dollar on your taxes. Which is zero. So your tax rate multiplied by 0 is.....

         

        What would have happened if you made 51 cents...

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        • #5
          Thank you for the responses!  I'll sleep soundly tonight  

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