One suggestion: Since you mentioned "backdoor Roth", I suggest that you research it first - google it to avoid surprises. You mentioned that $3000 was all you could afford, but the only reason that a "Backdoor Roth" is used to allow taxpayers that have an income so high (Married jointly over $190,000) that they cannot contribute directly to a Roth IRA, but do it "backdoor". If your MAGI is less than that and you want a Roth then just contribute to a Roth in the first place and don't mess with a "backdoor".
The "Backdoor Roth" does not exist in tax law. It is a procedure used by some to take advantage of a quirk in tax law that allows making a non-deductible contribution to a Traditional IRA when one cannot contribute to a Roth IRA, and the immediately converting the Traditional IRA to a Roth IRA, thereby getting the money into the Roth via "backdoor".
That "procedure" can only work of all these requirements are met otherwise there will be some tax.
1) No Traditional IRA account whatsoever can exist (that includes any SEP or SIMPLE IRA accounts) at the start.
2) The Tradition IRA contributions must be reported on a 8606 form as non-deductible.
3) The conversion to a ROTH must be shortly after the contribution to avoid taxable gains.
4) The entire Traditional IRA value must be zero that the end of the year of conversion.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
