DSInvestor wrote:What about collecting dividends received in the taxable accounts and use them for IRA contributions? If you have enough dividends, you wouldn't need to sell any shares and realize capital gains.
Backdoor IRA is not a good choice if you have substantial pre-tax IRA assets as IRS will make you prorate your IRA basis when you do Roth conversion step of the backdoor into Roth IRA. IRS form 8606 figures out the taxable and non-taxable portions of Roth conversions and it is an individual form. So if you have substantial pre-tax IRA assets but your spouse does not, your spouse would be a good candidate for backdoor into Roth IRA but you would not.
DSInvestor wrote:Are you currently adding to your taxable accounts? You can reduce your contributions to taxable and fully fund the IRAs instead.
If you're withdrawing from the Inherited IRA, you could direct some of that money into your IRAs as well. If you don't need that money to meet expenses, why not fill up your annual tax advantaged contribution space?
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