I am coming to the understanding of Backdoor Roths late to the game, and I am wondering if my past decisions make my situation too messed up to worry about. Married-filing-jointly, not at the Roth income phase-out level yet but might be there within 3-5 years, already maxing out HSA & 401k.
A little history:
1. Rolled over a 401k to a Traditional IRA at Fidelity in 2006.
2. Regular Traditional IRA contributions (small amounts) in 2007 and 2015.
3. Moved from Fidelity to Merrill Edge in 2020.
4. No other contributions to Traditional IRA, no conversions to Roth IRA.
Note: The balance is large enough that I do not want to convert the whole thing to Roth IRA in one year, probably would want to spread it over at least 5 years.
Does step 2 above preclude me from being able to roll-over my Traditional IRA to my current 401k? Or is that dependent on the plan itself? If the plan only allows rolled-over-401k money, is there a way to "unwind" and segregate my regular contributions from my rollover? Does my step 3 complicate anything in that regard?
My current thinking is that I will convert my wife's smaller balance (~$15K) Traditional to Roth over the next couple years. Then we could at least Backdoor for her even if it is not worth the hassle of doing the the same for me.
A little history:
1. Rolled over a 401k to a Traditional IRA at Fidelity in 2006.
2. Regular Traditional IRA contributions (small amounts) in 2007 and 2015.
3. Moved from Fidelity to Merrill Edge in 2020.
4. No other contributions to Traditional IRA, no conversions to Roth IRA.
Note: The balance is large enough that I do not want to convert the whole thing to Roth IRA in one year, probably would want to spread it over at least 5 years.
Does step 2 above preclude me from being able to roll-over my Traditional IRA to my current 401k? Or is that dependent on the plan itself? If the plan only allows rolled-over-401k money, is there a way to "unwind" and segregate my regular contributions from my rollover? Does my step 3 complicate anything in that regard?
My current thinking is that I will convert my wife's smaller balance (~$15K) Traditional to Roth over the next couple years. Then we could at least Backdoor for her even if it is not worth the hassle of doing the the same for me.
Statistics: Posted by jeph36 — Tue Apr 09, 2024 4:34 pm — Replies 0 — Views 14