VAer
Level 4

Interest incurred during Backdoor Roth Conversion

For example, if traditional IRA balance is $0 before Backdoor Roth Conversion, then I contribute $6500 (non-deductible) to traditional IRA for year 2023. It will take a few business days for contribution to settle before withdraw. A few days later, the balance becomes $6501 due to interest, then I do backdoor roth conversion on full balance $6501.

 

Will it cause any issue when converting more money($6501) than contribution($6500)? How to deal with incurred interest?

 

Thanks.