@richardk19 wrote:
Thank you. Can you please clarify what you meant by "and many more" when you said "Also be sure you understand how the so called "Backdoor Roth" works. Since you already have $500 earnings and many more, then it will be partly taxable."
My understanding is that since I am only converting the $6500 from Traditional IRA to backdoor ROTH (my original contribution of $6000, plus the increase in value of $500 attributed to the $6,000 contribution), that only the $500 would be a taxable gain.
Can you confirm that I am understanding correctly? Thanks!
"Many" was a typo and spell check changed what was suppose to be "maybe" to many. So at least $500 will be taxable. For a backdoor roth to work the value of all Traditional IRA accounts must be zero at years end so you need to convert whatever is in the IRA including taxable earnings that the IRA might have by the time you convert it.
**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.**
