Backdoor Roth Interest

[USER987456]

When it was time to roll over the backdoor Roth last year after a few days there was $4 interest along with the $7000 contribution. Do I need to withdraw this or does it not reach the level where is it excess? Not sure what steps to take! Thank you

[DanaB27]

No, you do not need to withdraw the $4, this is not an excess contribution. Earnings will be taxable income when you convert it to the Roth IRA.

Please see How do I enter a backdoor Roth IRA conversion? for additional information.

[fanfare]

the proper action is to convert $7,004 or 100% to your Roth IRA.

Then you can use the "backdoor" again next year.

@USER987456