earlier this year i contributed $5,500 to a traditional ira with the intent of converting it to a roth ira. i then realized that i needed to do something with an existing rollover ira before converting the traditional to roth. i took care of the rollover ira by moving it into my company 401k. that process took a while and in the meantime the $5,500 traditional ira has grown to $5,510.28.
question: what should i do to address the $10.28 over the $5,500 limit?
thank you in advance for the help.
Backdoor Roth IRA Question
Re: Backdoor Roth IRA Question
Nothing. Just convert the 5510. Your taxable income will only be $10 and if your taxable income is less than 100k, you actual taxes will probably not even change because your tax liability comes from a tax table that only changes by an increment of $50.
Remember, your regular IRA contribution is still just 5500 and the added 10 are gains. A conversion does not have any dollar limit because it is not a regular Roth contribution.
Remember, your regular IRA contribution is still just 5500 and the added 10 are gains. A conversion does not have any dollar limit because it is not a regular Roth contribution.