Thanks again for your response. I just filed my taxes and had to pay the penalty but am working on fixing this for the future. I still want to perform the backdoor IRA in 2024, but want to prevent any issues this time.
The first option of the reverse rollover sounds good. I am checking with my employer to see if it is possible.
I prefer the second option since schwab charges less fees for the investment options I want to select. With that in mind, I have a follow-up question on the second option: Converting the rest of the pre-tax funds in the traditional IRA to Roth IRA.
- Is this conversion considered to be part of the backdoor ira or am I able to convert the existing funds into my roth ira and also do the $7k for the backdoor ira?
