Hi,
This was my first year (2023) of doing a Backdoor Roth conversion. I used YouTube videos as my guide and seem to have messed up big time because of some weird money holding rules at Fidelity. I would really appreciate help in resolving this issue.
Our Annual AGI for 2023 was higher than Roth Contribution limit and we maxed out 2023 401(k) contribution for both of us already.
Followed the same steps below for both me and wife
1) Moved $6500 (max Roth IRA contribution for 2023) After-Tax Money from Bank Account to a new Trad IRA account (2023) on Fidelity last week
2) Fidelity started paying interest on this money but will not let me move it to Roth IRA Account till today (7-8 days)
3) On calling them they told me they don't have any option where they don't pay interest on this 'held' amount
4) As soon as window opened I transferred $6500 to the Roth IRA Account but now have around $5 sitting in Trad IRA
My dilemma is what to do with this ~$5 which is legal from IRS perspective. Can I move it to a 2024 401(k) account or just withdraw it and pay some kind of penalty or tax.
Which tax forms will I need to fill in Turbo Tax additionally for 2023/2024. I am very confused researching this issue myself and would like someone who knows more about this stuff than me to guide me.
