Hello, I am trying to do Backdoor Roth IRA conversion between Traditional IRA and Roth IRA account.
I am using Fidelity which takes about 10 days before I can transfer funds in Traditional IRA to Roth IRA after my money is transferred to the Traditional IRA account. However I already seeing 40 cents of reinvested dividend in my Traditional IRA account only 2 days after $6500 is deposited there. I am wondering what should I do with the extra dividend when I can convert funds from Traditional IRA to Roth IRA.
My questions are:
1. Should I just transfer $6500 and leave the extra dividends in the Traditional IRA so my money growth in Roth IRA won't get taxed in the future?
2. In case I need to convert everything from Traditional IRA to Roth IRA, do I need to pay the tax for dividend next year or wait until retirement?
Thanks in advance!
