Historically I've only done this a couple times a year because it was annoying: I had to call Fidelity, have them physically mail me checks made out to Vanguard (where my Roth IRA is), which I then physically mailed to vanguard with a letter of instruction. There are a few steps to the backdoor Roth IRA, but before we get into those, let's talk about why we talk about the backdoor Roth IRA around here. I recently went through the process of doing a Backdoor Roth IRA using Fidelity. Anonymous: Does anyone know how to do it? save. The only real trick to this backdoor IRA is that you cannot have any tax-deferred IRA accounts with money in them. share. Backdoor Roth IRA enables you to convert money anywhere anytime you want Roll-over Your Money into Roth IRA . She would sell $10,000 of ABC in her traditional IRA but then convert this amount to a Roth IRA, and purchase $10,000 in XYZ shares in her Roth IRA. First contributed directly to the Roth IRA. Backdoor Roth IRA at Fidelity: 45% FZROX (Total US Stock Market Fund) 35% FZILX (Total International Stock Market Fund) 10% FSSNX (Fidelity small cap index fund) 5% QQQ. Complicated Roth IRA: Fidelity->Vanguard transfer, over income limit, backdoor Roth. Ensure you avail the check and then deposit the amount into your Roth IRA Account within 60 days. In a mega backdoor Roth, people who have a 401k that allows after-tax contributions. Posted by 2 years ago. Step 7. My Mega Backdoor Roth IRA Rollover—In-Service Distribution. You had to really know what you are doing and then make periodic phone calls to to a conversion. But let's talk about the backdoor Roth IRA for a minute. I have a Roth IRA and just opened a traditional IRA. Hello, friends. 100% Upvoted. How to Contribute to a Backdoor Roth IRA through Fidelity First things first. Upon conversion of the $6,000 to Roth, the IRS will see this as a … Retirement. At the very top navigation click the “Open an account” link. This kind of Roth IRA contribution is referred to as backdoor because it starts out as a contribution to a traditional IRA. I wrote this up back in 2017. Sorry, this post was deleted by the person who originally posted it. This type of conversion is sometimes called a backdoor Roth IRA. Yes, the action performed is the same. Fidelity will auto recognize the roth conversion, and you'll need to do the proper paperwork when it comes tax time: Fidelity will send you a 5498 that shows the contribution of 6K to the IRA, another 5498 for Roth contribution (ie transfer), and a 1099R for the 6K leaving the traditional account. Backdoor Roth IRA: Ultimate Fidelity Step by Step Guide. It's fairly easy process, but you probably won't become a millionaire just by maxing out on IRA. The IRA provider doesn't need to know or care whether your tIRA contributions are deductible or not. Archived. When you file, you'll need to fill out an 8606 for the initial contribution. The balances have to be $0.00. So this brings the total tax advantaged contribution amount possible to … Join our community, read the PF Wiki, and get on top of your finances! But not all 401(k) plans allow them. I have a Roth IRA on Fidelity and just opened a Traditional with no balance. I did this for 2017 and will do in 2018 and beyond. Ensure you avail the check and then deposit the amount into your Roth IRA Account within 60 days. Press J to jump to the feed. $3000 each into VTSAX and VTIAX ($3000 minimum for each fund) The money was then placed in the Roth IRA and I paid taxes on the 18k. A Vanguard IRA does have a $20 annual fee. Converting money in a traditional 401(k) or IRA to a Roth 401(k) or Roth IRA has many potential advantages. Basically, the mega backdoor Roth IRA is just like a backdoor Roth, but since you can use 401(k) funds, the amount is a lot more. I searched through the history but couldn't find anything related to this. 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