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Backdoor Roth Conversion and Traditional IRA balance due to interest
In December 2022, I performed a Backdoor Roth for my wife.
1. Opened a Traditional IRA (A) with Fidelity.
2. Funded the new Traditional IRA (A) with max of $6000 with core position of SPAXX
3. A few days later, the Traditional IRA (A) received a dividend of $8.69
4. I converted the Traditional IRA (A) $6000 to existing Roth IRA b/c my understanding was that $6000 was the max for contribution to Roth.
5. There was a Traditional IRA (A) balance of $8.69 after the conversion. Since then the Traditional IRA (A) balance has grown to $9.08 as of today.
6. A few days ago, I opened another Traditional IRA (B) for my wife with Fidelity and funded it with max of $6500 with core position of SPAXX in preparation for another Backdoor Roth IRA Conversion.
Questions:
1. Since there was/is a balance of $9 in Traditional IRA (A) on 12/31/2022, will the first Backdoor Roth conversion be a taxable event? If so, how will we be taxed for that event? Will the Roth now be taxed a second time (post-tax $ invested, taxed again upon withdrawal)
2. Should I have converted the TOTAL Traditional IRA (A) or $6008 balance to the Roth in that first Backdoor Roth Conversion?
3. What is the best way to handle the $9 in the Traditional IRA (A) now to minimize taxes?
4. If the Traditional IRA (A) backdoor Roth was a taxable event, will it affect taxes on future Backdoor Roth Conversions (e.g. 2023)?
Thank you.