I have about 40k in IRA contribution with fidelity and now I wanted to do make backdoor Roth IRA going forward from 2024 (due to non eligibility for deductible contribution and income limit).I understand to do backdoor Roth I cannot just convert 2024 contribution to Roth due to pro-rata rule.so my question is that If I don't want to touch the fidelity account and worry about conversion,Can I open another traditional IRA with Schwab and Just contribute 2024 portion and then do backdoor Roth at Schwab.Is there any consequences by doing it,?
No. As previously answered, when considering how Roth conversions are taxed and the pro-rata rule, all your IRA balances are combined, no matter how many different accounts they are spread out over. If you have deductible funds in bank A, and you contribute non-deductible funds to a different account with bank B, they are considered one account, and the conversion will use the pro-rata rule by combining A+B.
No. As previously answered, when considering how Roth conversions are taxed and the pro-rata rule, all your IRA balances are combined, no matter how many different accounts they are spread out over. If you have deductible funds in bank A, and you contribute non-deductible funds to a different account with bank B, they are considered one account, and the conversion will use the pro-rata rule by combining A+B.
You keep mentioning non-deductible.
There's no reason to do a Backdoor Roth contribution if your income does not come up against the Roth contribution phase-out rule.
The fact that your IRA contribution is not deductible is irelevant.
The backdoor process relies on you electing a non-deductible IRA contribution.