Traditional IRA account earning interest

[archanapb]

I opened a traditional IRA account with $6500 so I can convert it to Roth IRA for backdoor Roth conversion. I converted to Roth IRA a week later in 2023, transferring the entire $6500. However, because the funds were in my traditional IRA account for about a week, it started earning interest even after the funds have been entirely moved to Roth IRA. Currently, the balance on my traditional IRA account is $18. I don't plan on using traditional IRA for my retirement income. Is it better to close the account so I stop accruing interest income and hence pay taxes? What's my best course of action to save on paying taxes year after year? 

[AmyC]

It sounds like you really don't want to bother with that small account and have it hanging over you. It is a small amount, you can roll it to your Roth, if allowed, or just close it out. However, you may incur a penalty, if under age. Being such a small amount, you can take it now and relax or decide to let it ride until you are a senior. Whichever one you can handle emotionally is the best choice for you.

Please see IRA FAQs - Distributions (Withdrawals)