Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

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Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Wed Aug 22, 2018 8:14 pm

Hi all,

I'm doing my homework to setup my first backdoor Roth IRA for this year. I currently have the following accounts:
  • Rollover IRA (because its a rollover, everything in there is pretax, Fidelity)
  • Roth IRA (Fidelity)
  • 401k (from previous job, Fidelity)
  • 403b (current job, TIAACREF)
To avoid the prorata rule and general messiness, I'm trying empty out my current IRA. The problem is that I can't figure out how to go about it. Here's what i understand:
  • I don't want to move it to my Fidelity 401k because the investment options are not very good
  • I can't move it to my 403b (I emailed them to ask if it would be possible and they said no)
  • I can't move it to my Roth IRA because i'd owe too much tax on the amount and it'd bump me into a higher tax bracket
Are there any other options? I've read a little about solo 401ks. I don't have a side business, but my wife does (LLC). She's in pretty much the same situation here so maybe she can look into that.

Thanks in advance!

PFInterest
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Joined: Sun Jan 08, 2017 12:25 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by PFInterest » Wed Aug 22, 2018 9:15 pm

your wife can move her IRA to her 401k. you cant.

why are your 401k options bad? you dont list them, so i dont know.

but to open up the backdoor rIRA that seems like the best bet.

sailaway
Posts: 1145
Joined: Fri May 12, 2017 1:11 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by sailaway » Wed Aug 22, 2018 9:23 pm

I am probably making this up, but I was under the impression that most 401k plans will not allow you to roll in an IRA after you have left the company.

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Wed Aug 22, 2018 9:25 pm

Here are my 401k options. I currently have a 3 fund portfolio plus some company stock using L3FUND/FXAIX/FSGSX/DODIX

Code: Select all

Name/Inception Date 	Asset Class 	Category 	Gross Expense Ratio** 
L3 STOCK FUND 05/10/2013 	Stock Investments 	Company Stock		0.0069% 	
AF GRTH FUND AMER R6 (RGAGX) 11/30/1973 	Stock Investments 	Large Cap		0.33% 	
DODGE & COX STOCK (DODGX) 01/04/1965 	Stock Investments 	Large Cap		0.52% 	
FID 500 INDEX IPR (FXAIX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	
FID MAGELLAN K (FMGKX) 05/02/1963 	Stock Investments 	Large Cap		0.61% 	
FID MID CAP IDX INS (FSTPX) 09/08/2011 	Stock Investments 	Mid-Cap		0.025% 	
FID SM CAP IDX INS (FSSSX) 09/08/2011 	Stock Investments 	Small Cap		0.025% 	
TRP SM CAP STOCK I (OTIIX) 06/01/1956 	Stock Investments 	Small Cap		0.75% 	
FID DIVERSFD INTL K6 (FKIDX) 05/25/2017 	Stock Investments 	International		0.6% 	
FID GLB XUS IDX INS (FSGSX) 09/08/2011 	Stock Investments 	International		0.06% 	
FID BALANCED K (FBAKX) 11/06/1986 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2005 K (FSNJX) 11/06/2003 	Blended Fund Investments* 	N/A		0.43% 	
FID FREEDOM 2010 K (FSNKX) 10/17/1996 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2015 K (FSNLX) 11/06/2003 	Blended Fund Investments* 	N/A		0.5% 	
FID FREEDOM 2020 K (FSNOX) 10/17/1996 	Blended Fund Investments* 	N/A		0.54% 	
FID FREEDOM 2025 K (FSNPX) 11/06/2003 	Blended Fund Investments* 	N/A		0.57% 	
FID FREEDOM 2030 K (FSNQX) 10/17/1996 	Blended Fund Investments* 	N/A		0.61% 	
FID FREEDOM 2035 K (FSNUX) 11/06/2003 	Blended Fund Investments* 	N/A		0.64% 	
FID FREEDOM 2040 K (FSNVX) 09/06/2000 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2045 K (FSNZX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2050 K (FNSBX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2055 K (FNSDX) 06/01/2011 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2060 K (FNSFX) 08/05/2014 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM INC K (FNSHX) 10/17/1996 	Blended Fund Investments* 	N/A		0.42% 	
MIP II CL 3 04/20/1993 7 day yield as of 07/31/2018   2.12% 	Bond Investments 	Stable Value		0.32%
BLKRK HIGH YLD BD K (BRHYX) 11/19/1998 	Bond Investments 	Income		0.54%
DODGE & COX INCOME (DODIX) 01/03/1989 	Bond Investments 	Income		0.43% 	
FID GNMA (FGMNX) 11/08/1985 	Bond Investments 	Income		0.45% 	
VANG INFL PROT INST (VIPIX) 06/29/2000 	Bond Investments 	Other		0.07% 	


Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by Spirit Rider » Wed Aug 22, 2018 10:30 pm

If your wife has self-employment earnings, her business can adopt a one-participant 401k plan and she can open a 401k account under that plan.

She can then employ you for some admin tasks. As a spouse-employee you would also be eligible to open a 401k accout under her businesses one-participant 401k plan.

Then both of you could rollover your IRAs to your 401k accounts if the plan provider accepts IRA rollovers. Vanguard does not.

student
Posts: 4521
Joined: Fri Apr 03, 2015 6:58 am

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by student » Thu Aug 23, 2018 4:30 am

DanEmmy wrote:
Wed Aug 22, 2018 9:25 pm
Here are my 401k options. I currently have a 3 fund portfolio plus some company stock using L3FUND/FXAIX/FSGSX/DODIX

Code: Select all

Name/Inception Date 	Asset Class 	Category 	Gross Expense Ratio** 
L3 STOCK FUND 05/10/2013 	Stock Investments 	Company Stock		0.0069% 	
AF GRTH FUND AMER R6 (RGAGX) 11/30/1973 	Stock Investments 	Large Cap		0.33% 	
DODGE & COX STOCK (DODGX) 01/04/1965 	Stock Investments 	Large Cap		0.52% 	
FID 500 INDEX IPR (FXAIX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	
FID MAGELLAN K (FMGKX) 05/02/1963 	Stock Investments 	Large Cap		0.61% 	
FID MID CAP IDX INS (FSTPX) 09/08/2011 	Stock Investments 	Mid-Cap		0.025% 	
FID SM CAP IDX INS (FSSSX) 09/08/2011 	Stock Investments 	Small Cap		0.025% 	
TRP SM CAP STOCK I (OTIIX) 06/01/1956 	Stock Investments 	Small Cap		0.75% 	
FID DIVERSFD INTL K6 (FKIDX) 05/25/2017 	Stock Investments 	International		0.6% 	
FID GLB XUS IDX INS (FSGSX) 09/08/2011 	Stock Investments 	International		0.06% 	
FID BALANCED K (FBAKX) 11/06/1986 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2005 K (FSNJX) 11/06/2003 	Blended Fund Investments* 	N/A		0.43% 	
FID FREEDOM 2010 K (FSNKX) 10/17/1996 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2015 K (FSNLX) 11/06/2003 	Blended Fund Investments* 	N/A		0.5% 	
FID FREEDOM 2020 K (FSNOX) 10/17/1996 	Blended Fund Investments* 	N/A		0.54% 	
FID FREEDOM 2025 K (FSNPX) 11/06/2003 	Blended Fund Investments* 	N/A		0.57% 	
FID FREEDOM 2030 K (FSNQX) 10/17/1996 	Blended Fund Investments* 	N/A		0.61% 	
FID FREEDOM 2035 K (FSNUX) 11/06/2003 	Blended Fund Investments* 	N/A		0.64% 	
FID FREEDOM 2040 K (FSNVX) 09/06/2000 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2045 K (FSNZX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2050 K (FNSBX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2055 K (FNSDX) 06/01/2011 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2060 K (FNSFX) 08/05/2014 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM INC K (FNSHX) 10/17/1996 	Blended Fund Investments* 	N/A		0.42% 	
MIP II CL 3 04/20/1993 7 day yield as of 07/31/2018   2.12% 	Bond Investments 	Stable Value		0.32%
BLKRK HIGH YLD BD K (BRHYX) 11/19/1998 	Bond Investments 	Income		0.54%
DODGE & COX INCOME (DODIX) 01/03/1989 	Bond Investments 	Income		0.43% 	
FID GNMA (FGMNX) 11/08/1985 	Bond Investments 	Income		0.45% 	
VANG INFL PROT INST (VIPIX) 06/29/2000 	Bond Investments 	Other		0.07% 	

I don't understand why you say it is bad. You have
FID 500 INDEX IPR (FXAIX) 02/17/1988 Stock Investments Large Cap 0.015%
FID MID CAP IDX INS (FSTPX) 09/08/2011 Stock Investments Mid-Cap 0.025%
FID SM CAP IDX INS (FSSSX) 09/08/2011 Stock Investments Small Cap 0.025%
FID GLB XUS IDX INS (FSGSX) 09/08/2011 Stock Investments International 0.06%
VANG INFL PROT INST (VIPIX) 06/29/2000 Bond Investments Other 0.07%

So instead of one total market fund, you use one large-cap, one mid-cap and one small-cap. Some may even prefer this as you can tilt. If you want the simplest possible investment in domestic stock, just doing S&P 500 is not unreasonable.

PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by PFInterest » Thu Aug 23, 2018 6:28 am

DanEmmy wrote:
Wed Aug 22, 2018 9:25 pm
Here are my 401k options. I currently have a 3 fund portfolio plus some company stock using L3FUND/FXAIX/FSGSX/DODIX

Code: Select all

Name                          Expense Ratio
L3 STOCK FUND 			0.0069% 	
FID 500 INDEX IPR (FXAIX) 	0.015% 	
FID MID CAP IDX INS (FSTPX) 	0.025% 	
FID SM CAP IDX INS (FSSSX) 	0.025% 	
MIP II CL 3  2.12% SV		0.32%
DODGE & COX INCOME (DODIX) 	0.43% 	
VANG INFL PROT INST (VIPIX) 	0.07% 	
your investment options are perfectly fine. i cleaned it up so you can see. good thing we asked.
so that solves your problem.

retiredjg
Posts: 39405
Joined: Thu Jan 10, 2008 12:56 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by retiredjg » Thu Aug 23, 2018 7:46 am

Your old 401k is just fine if you pick the low cost funds. If they will take the rollover, that's what you should do.

As for your spouse, does she have a 401k/403b that will take her rollover?

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Thu Aug 23, 2018 9:26 am

Ok, I guess those options are good. All my other accounts have the perfect Fidelity or Vanguard boglehead trifectas in them. In the grand scheme of things it could be a lot worse, but i've been fortunate enough to not have seen such accounts. Short story, these just strike me as slightly messier.

Myself:
I'll call up Fidelity and see if i can roll over into my old 401k.

My wife:
She started the LLC several years ago, but she hasn't been active in it for a couple years. She is now employed elsewhere full time and has a new 401k in addition to her old rollover IRA and Roth IRA at Fidelity. I guess solo 401ks through her company can be a Plan B.

Here are her investment options at her Fidelity 401k at her current employer. I deleted the target blended funds with high ERs. She currently has a 3fund using FUSVX/FSGDX/FIKFX:

Code: Select all

Name	Asset Class	Category	Gross Expense Ratio**
***FID 500 INDEX PR (FUSVX)	Stock Investments	Large Cap	0.015%
JH DISCPL VALUE R6 (JDVWX)	Stock Investments	Large Cap	0.71%
TRP DIV GROWTH (PRDGX)	Stock Investments	Large Cap	0.64%	
TRP NEW AMERICA GRTH (PRWAX)	Stock Investments	Large Cap	0.79%	
COL MID CAP INDEX I2 (CPXRX)	Stock Investments	Mid-Cap	0.27%	
VOYA MID CAP OPPS I (NMCIX)	Stock Investments	Mid-Cap	1%	
GS SM CAP VALUE INST (GSSIX)	Stock Investments	Small Cap	0.97%	
PGIM J SMALL CO Z (PSCZX)	Stock Investments	Small Cap	0.81%	
PIF SMCP S&P600 INST (PSSIX)	Stock Investments	Small Cap	0.22%	
AF EUROPAC GROWTH R6 (RERGX)	Stock Investments	International	0.49%
COL EMRG MKT I3 (CEKYX)	Stock Investments	International	1.13%	
***FID GLB XUS IDX PR (FSGDX)	Stock Investments	International	0.06%	
MFS INTL NEW DISC R4 (MIDJX)	Stock Investments	International	1.06%	
***FID FDM IDX INC INV (FIKFX)	Blended Investments	N/A	0.17%
FRANKLIN INCOME ADV (FRIAX)	Blended Investments	N/A	0.48%	
AMCENT INFL-ADJBD IV (ACITX)	Bond Investments	Income	0.47%	
FKLN US GOVT SEC ADV (FUSAX)	Bond Investments	Income	0.62%	
LD ABT SH DRTN INC I (LLDYX)	Bond Investments	Income	0.39%	
LOOMIS BOND INST (LSBDX)	Bond Investments	Income	0.66%	
FID GOVT MMKT (SPAXX)7 day yield as of 07/31/2018   1.56% Short-Term Investments	N/A	0.42%	
Seems like fine choices as well so we'll look into that.

Thanks for the support, all. I'll report back if i run into any trouble trying to roll these over.
Last edited by teamDE on Thu Aug 23, 2018 9:36 am, edited 1 time in total.

DSInvestor
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by DSInvestor » Thu Aug 23, 2018 9:34 am

DanEmmy wrote:
Thu Aug 23, 2018 9:26 am
Ok, I guess those options are good. All my other accounts have the perfect Fidelity or Vanguard boglehead trifectas in them. In the grand scheme of things it could be a lot worse, but i've been fortunate enough to not have seen such accounts. Short story, these just strike me as slightly messier.
Over the years, I've often cited Von Clausewitz' epigram, "the greatest enemy of a good plan is the dream of a perfect plan." - John Bogle speech October 16,1999.
https://www.vanguard.com/bogle_site/lib/sp19991016.html

BTW, you don't need the perfect trifecta in every account. If you treat your portfolio as one large bucket rather than separate accounts where each account holds 3 asset classes, you can take advantage of the best options in your largest account and then use other accounts to round out the portfolio. For example, the S&P 500 fund with 0.015% expense ratio would be an excellent choice for US stock allocation. If another account has an excellent low cost bond option, load up on your bonds there.
Wiki

sasecool
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Joined: Fri Sep 02, 2016 7:16 am

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by sasecool » Thu Aug 23, 2018 11:38 am

DanEmmy wrote:
Wed Aug 22, 2018 9:25 pm
Here are my 401k options. I currently have a 3 fund portfolio plus some company stock using L3FUND/FXAIX/FSGSX/DODIX

Code: Select all

Name/Inception Date 	Asset Class 	Category 	Gross Expense Ratio** 
L3 STOCK FUND 05/10/2013 	Stock Investments 	Company Stock		0.0069% 	
AF GRTH FUND AMER R6 (RGAGX) 11/30/1973 	Stock Investments 	Large Cap		0.33% 	
DODGE & COX STOCK (DODGX) 01/04/1965 	Stock Investments 	Large Cap		0.52% 	
FID 500 INDEX IPR (FXAIX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	
FID MAGELLAN K (FMGKX) 05/02/1963 	Stock Investments 	Large Cap		0.61% 	
FID MID CAP IDX INS (FSTPX) 09/08/2011 	Stock Investments 	Mid-Cap		0.025% 	
FID SM CAP IDX INS (FSSSX) 09/08/2011 	Stock Investments 	Small Cap		0.025% 	
TRP SM CAP STOCK I (OTIIX) 06/01/1956 	Stock Investments 	Small Cap		0.75% 	
FID DIVERSFD INTL K6 (FKIDX) 05/25/2017 	Stock Investments 	International		0.6% 	
FID GLB XUS IDX INS (FSGSX) 09/08/2011 	Stock Investments 	International		0.06% 	
FID BALANCED K (FBAKX) 11/06/1986 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2005 K (FSNJX) 11/06/2003 	Blended Fund Investments* 	N/A		0.43% 	
FID FREEDOM 2010 K (FSNKX) 10/17/1996 	Blended Fund Investments* 	N/A		0.46% 	
FID FREEDOM 2015 K (FSNLX) 11/06/2003 	Blended Fund Investments* 	N/A		0.5% 	
FID FREEDOM 2020 K (FSNOX) 10/17/1996 	Blended Fund Investments* 	N/A		0.54% 	
FID FREEDOM 2025 K (FSNPX) 11/06/2003 	Blended Fund Investments* 	N/A		0.57% 	
FID FREEDOM 2030 K (FSNQX) 10/17/1996 	Blended Fund Investments* 	N/A		0.61% 	
FID FREEDOM 2035 K (FSNUX) 11/06/2003 	Blended Fund Investments* 	N/A		0.64% 	
FID FREEDOM 2040 K (FSNVX) 09/06/2000 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2045 K (FSNZX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2050 K (FNSBX) 06/01/2006 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2055 K (FNSDX) 06/01/2011 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM 2060 K (FNSFX) 08/05/2014 	Blended Fund Investments* 	N/A		0.65% 	
FID FREEDOM INC K (FNSHX) 10/17/1996 	Blended Fund Investments* 	N/A		0.42% 	
MIP II CL 3 04/20/1993 7 day yield as of 07/31/2018   2.12% 	Bond Investments 	Stable Value		0.32%
BLKRK HIGH YLD BD K (BRHYX) 11/19/1998 	Bond Investments 	Income		0.54%
DODGE & COX INCOME (DODIX) 01/03/1989 	Bond Investments 	Income		0.43% 	
FID GNMA (FGMNX) 11/08/1985 	Bond Investments 	Income		0.45% 	
VANG INFL PROT INST (VIPIX) 06/29/2000 	Bond Investments 	Other		0.07% 	

I would agree that these options are fine. Sp500 plus the small mid cap blend would get a large portion. Of the market.

I would roll into that account.

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Thu Sep 13, 2018 8:42 am

Hi all, here's an update:

Me: Because i'm no longer employed by the company my 401k is from, Fidelity says i can't roll my IRA into it.

Wife: She still works for the company with her Fidelity 401k, but we haven't yet confirmed she can roll her Fidelity IRA into, but i assume so. Turns out she also has an IRA at Vangard. Are there any issues with rolling an IRA from Vangard to the Fidelity 401k? I figure we'll try that first since it seems more complicated. We'll call and find out soon.

I'm not sure what to do for my case. I guess i need to start a side business? Have my wife hire me? Is that ok? Is it worth it? Maybe forgo the Roth IRA and just go pretax IRA/401k and taxable accounts?

Might be time to bring in a professional.

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by retiredjg » Thu Sep 13, 2018 9:24 am

Your IRA does not affect your wife's ability to use the back door, so she can still do it (assuming she can roll her IRA).

If you can't manage it, just put the money into a taxable account instead. Roth is somewhat better, but taxable is good enough. The important thing is to save money.

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Darth Xanadu
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by Darth Xanadu » Thu Sep 13, 2018 10:50 am

See Spirit Rider's earlier comment as one possible solution for you. Maybe down the road, you will have a different job that allows you to roll IRA balance into a work plan. Otherwise, I agree with regiredjg, just save in taxable since Roth IRA is not an option (if you don't pursue side job).

Have your spouse clear out her IRA and utilize back door Roth.
"A courageous teacher, failure is."

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Sun Sep 16, 2018 6:18 pm

Hi all,

I've discovered a twist in my wife's 401k. In additional to pre-tax contributions, she can also make Roth contributions. From what i gather, this method is not subject to the income limits of a Roth IRA, but the total of pretax 401k + Roth 401k is limited to the 401k $18,500. Is that right? If we made a "Roth" contribution, would it create a new Fidelity account as a Roth 401k or they some how mixed in the same account?

I'm guessing that pursuing the backdoor Roth IRA plan is still better because it would allow the $18500 in the 401k pretax PLUS the $5500 in the Roth IRA. Right?

Thanks again.

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FiveK
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by FiveK » Sun Sep 16, 2018 8:38 pm

DanEmmy wrote:
Sun Sep 16, 2018 6:18 pm
Hi all,

I've discovered a twist in my wife's 401k. In additional to pre-tax contributions, she can also make Roth contributions. From what i gather, this method is not subject to the income limits of a Roth IRA, but the total of pretax 401k + Roth 401k is limited to the 401k $18,500. Is that right? If we made a "Roth" contribution, would it create a new Fidelity account as a Roth 401k or they some how mixed in the same account?

I'm guessing that pursuing the backdoor Roth IRA plan is still better because it would allow the $18500 in the 401k pretax PLUS the $5500 in the Roth IRA. Right?

Thanks again.
Yes to the "Right?" questions.

Fidelity should segregate the Roth 401k funds from the traditional 401k funds, because there are significant tax differences when those funds are withdrawn. Not sure exactly how Fidelity does it, but am ~100% sure it does do so.

Spirit Rider
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by Spirit Rider » Sun Sep 16, 2018 9:09 pm

DanEmmy wrote:
Sun Sep 16, 2018 6:18 pm
I'm guessing that pursuing the backdoor Roth IRA plan is still better because it would allow the $18500 in the 401k pretax PLUS the $5500 in the Roth IRA. Right?
Yes, a Backdoor Roth is not done because it is a Roth, but rather because it is extra tax-advantaged contribution space. Any decision whether 401k employee elective contributions should be employee deferrals or designated Roth contributions is a separate, but maybe related decision.

retiredjg
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by retiredjg » Mon Sep 17, 2018 5:30 am

If you make enough income that you cannot contribute directly to Roth IRA, chances are you should be using traditional 401k (to defer taxes) rather than Roth 401k.

https://www.bogleheads.org/wiki/Traditional_versus_Roth

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Wed Sep 19, 2018 7:25 pm

Thanks for sticking with me, I have another update on the wife side of things.

Today we were able to initiate rolling her Fidelity Rollover IRA to her Fidelity 401k. This had to be done via check for some reason, but it is in progress. I also found that the account she has at Vanguard is not a Traditional IRA, but instead a Roth IRA. So because she already has the Roth IRA going at Vanguard, i think i'll open a Traditional IRA there and fund it with $5500 from our bank buying Vanguard money market fund, VMMXX. We'll then convert that to the Rotha IRA, voila. She'll then be left with a zero balance traditional IRA at Fidelity which I assume is fine or they can close it.

So far so good? Thanks again.

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FiveK
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by FiveK » Wed Sep 19, 2018 7:58 pm

DanEmmy wrote:
Wed Sep 19, 2018 7:25 pm
So far so good?
Yes indeed. Good luck!

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747driver
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by 747driver » Wed Sep 19, 2018 10:23 pm

DanEmmy wrote:
Wed Sep 19, 2018 7:25 pm
This had to be done via check for some reason, but it is in progress.
It's done for security reasons. The check is made out to you and your address, making it hard for someone to just electronically transfer money to their account.
A clear conscience is a great pillow.

Topic Author
teamDE
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Tue Sep 25, 2018 9:32 pm

We got the check today from her IRA for the rollover to her 401k. The rep on the phone made it sound on the phone like we could easily deposit it using mobile deposit with the NetBenefits app. I don't see any mobile deposit at all in the app so i'm not sure what to make of that. I'll have to call in the morning. I sure hope there isn't some misunderstanding. I see the check statement has a trans type code "TDQ" which i googled to mean "direct rollover to an IRA"... which is not what i'm doing. Hopefully that's ok.

Assuming that works out, we need to pick out what funds to buy with it in her 401k. I listed them a few posts up. Unfortunately there aren't any total stock market index funds, only the S&P500 and the international one. There are some Freedom Index funds with a 0.18% ER. Maybe i could mix a bond heavy one of those into balance things out and get a little more small/mid cap exposure?

Spirit Rider
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by Spirit Rider » Tue Sep 25, 2018 9:44 pm

DanEmmy wrote:
Tue Sep 25, 2018 9:32 pm
We got the check today from her IRA for the rollover to her 401k. The rep on the phone made it sound on the phone like we could easily deposit it using mobile deposit with the NetBenefits app. I don't see any mobile deposit at all in the app so i'm not sure what to make of that. I'll have to call in the morning. I sure hope there isn't some misunderstanding. I see the check statement has a trans type code "TDQ" which i googled to mean "direct rollover to an IRA"... which is not what i'm doing. Hopefully that's ok.
If the check is made out to the new custodian it is most definitely a direct rollover. The fact that the check is mailed to you for deposit at the custodian is irrelevant. It is only an indirect roller if the check is made out to you personally and you deposit in a personal account and then cut a check from that account to the custodian.
Assuming that works out, we need to pick out what funds to buy with it in her 401k. I listed them a few posts up. Unfortunately there aren't any total stock market index funds, only the S&P500 and the international one. There are some Freedom Index funds with a 0.18% ER. Maybe i could mix a bond heavy one of those into balance things out and get a little more small/mid cap exposure?
Might there be an extended market index fund or a completion index fund. You can create a total market equivelent with 80% S&P 500 and 20% that fund.

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FiveK
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by FiveK » Tue Sep 25, 2018 9:49 pm

DanEmmy wrote:
Tue Sep 25, 2018 9:32 pm
Unfortunately there aren't any total stock market index funds, only the S&P500 and the international one.
Don't agonize over "only" the S&P 500.

E.g., compare VFIAX (S&P 500) vs. VTSAX (total US market) over the past 10 years at Morningstar: with both starting 9/25/2008 with $10,000, VFIAX is now worth $30,436 and VTSAX $30,707. The charts of the two are practically identical.

PFInterest
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by PFInterest » Tue Sep 25, 2018 9:50 pm

DanEmmy wrote:
Tue Sep 25, 2018 9:32 pm
We got the check today from her IRA for the rollover to her 401k. The rep on the phone made it sound on the phone like we could easily deposit it using mobile deposit with the NetBenefits app. I don't see any mobile deposit at all in the app so i'm not sure what to make of that. I'll have to call in the morning. I sure hope there isn't some misunderstanding. I see the check statement has a trans type code "TDQ" which i googled to mean "direct rollover to an IRA"... which is not what i'm doing. Hopefully that's ok.

Assuming that works out, we need to pick out what funds to buy with it in her 401k. I listed them a few posts up. Unfortunately there aren't any total stock market index funds, only the S&P500 and the international one. There are some Freedom Index funds with a 0.18% ER. Maybe i could mix a bond heavy one of those into balance things out and get a little more small/mid cap exposure?
- s&p is fine as you have the complement funds in your 401k.
- didnt know you could deposit it that way. we just did a rollover with fidelity, yes they send you the check, but then had to mail the check to them in ohio, so you should be fine.

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teamDE
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Tue Sep 25, 2018 9:52 pm

Ah, its made out to "FIIOC FBO <wife's name>" so sounds right i guess.

Since we're rolling over her IRA into her 401k, she'll have about 60% of her retirement assets in this account. The other 40% are in her Roth IRA. But yep, we'll try to get it balanced out between the two. Here are all of her 401k fund choices:

Code: Select all

FID 500 INDEX IPR (FXAIX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	No additional fees apply.
This option is frozen and unavailable to new investors FID 500 INDEX PR (FUSVX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	No additional fees apply.
JH DISCPL VALUE R6 (JDVWX) 01/02/1997 	Stock Investments 	Large Cap		0.71% 	No additional fees apply.
TRP DIV GROWTH (PRDGX) 12/30/1992 	Stock Investments 	Large Cap		0.64% 	No additional fees apply.
TRP NEW AMERICA GRTH (PRWAX) 09/30/1985 	Stock Investments 	Large Cap		0.79% 	No additional fees apply.
COL MID CAP INDEX I2 (CPXRX) 03/31/2000 	Stock Investments 	Mid-Cap		0.27% 	No additional fees apply.
VOYA MID CAP OPPS I (NMCIX) 08/20/1998 	Stock Investments 	Mid-Cap		1% 	No additional fees apply.
GS SM CAP VALUE INST (GSSIX) 10/22/1992 	Stock Investments 	Small Cap		0.97% 	No additional fees apply.
PGIM J SMALL CO Z (PSCZX) 11/13/1980 	Stock Investments 	Small Cap		0.81% 	No additional fees apply.
PIF SMCP S&P600 INST (PSSIX) 12/06/2000 	Stock Investments 	Small Cap		0.22% 	No additional fees apply.
AF EUROPAC GROWTH R6 (RERGX) 04/16/1984 	Stock Investments 	International		0.49% 	No additional fees apply.
COL EMRG MKT I3 (CEKYX) 01/02/1998 	Stock Investments 	International		1.13% 	No additional fees apply.
Investments you currently own FID GLB XUS IDX PR (FSGDX) 09/08/2011 	Stock Investments 	International		0.06% 	No additional fees apply.
MFS INTL NEW DISC R4 (MIDJX) 10/09/1997 	Stock Investments 	International		1.06% 	No additional fees apply.
FA FREEDOM 2005 I (FFIVX) 11/06/2003 	Blended Investments 	N/A		0.49% 	No additional fees apply.
FA FREEDOM 2010 I (FCIFX) 07/24/2003 	Blended Investments 	N/A		0.53% 	No additional fees apply.
FA FREEDOM 2015 I (FFVIX) 11/06/2003 	Blended Investments 	N/A		0.57% 	No additional fees apply.
FA FREEDOM 2020 I (FDIFX) 07/24/2003 	Blended Investments 	N/A		0.61% 	No additional fees apply.
FA FREEDOM 2025 I (FITWX) 11/06/2003 	Blended Investments 	N/A		0.66% 	No additional fees apply.
FA FREEDOM 2030 I (FEFIX) 07/24/2003 	Blended Investments 	N/A		0.7% 	No additional fees apply.
FA FREEDOM 2035 I (FITHX) 11/06/2003 	Blended Investments 	N/A		0.74% 	No additional fees apply.
FA FREEDOM 2040 I (FIFFX) 07/24/2003 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2045 I (FFFIX) 06/01/2006 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2050 I (FFFPX) 06/01/2006 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2055 I (FHFIX) 06/01/2011 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2060 I (FDKQX) 08/05/2014 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM INC I (FIAFX) 07/24/2003 	Blended Investments 	N/A		0.47% 	No additional fees apply.
FID FDM IDX 2005 INV (FJIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2010 INV (FKIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2015 INV (FLIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2020 INV (FPIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2025 INV (FQIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2030 INV (FXIFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2035 INV (FIHFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2040 INV (FBIFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2045 INV (FIOFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2050 INV (FIPFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2055 INV (FDEWX) 06/01/2011 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2060 INV (FDKLX) 08/05/2014 	Blended Investments 	N/A		0.19% 	No additional fees apply.
Investments you currently own FID FDM IDX INC INV (FIKFX) 10/02/2009 	Blended Investments 	N/A		0.17% 	No additional fees apply.
FRANKLIN INCOME ADV (FRIAX) 08/31/1948 	Blended Investments 	N/A		0.48% 	No additional fees apply.
AMCENT INFL-ADJBD IV (ACITX) 02/10/1997 	Bond Investments 	Income		0.47% 	No additional fees apply.
FKLN US GOVT SEC ADV (FUSAX) 05/29/1970 	Bond Investments 	Income		0.62% 	No additional fees apply.
LD ABT SH DRTN INC I (LLDYX) 11/04/1993 	Bond Investments 	Income		0.39% 	No additional fees apply.
LOOMIS BOND INST (LSBDX) 05/16/1991 	Bond Investments 	Income		0.66% 	No additional fees apply.
FID GOVT MMKT (SPAXX) 02/05/1990 7 day yield as of 08/31/2018   1.58% 	Short-Term Investments 	N/A		0.42% 	No additional fees apply. 

HEDGEFUNDIE
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Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by HEDGEFUNDIE » Tue Sep 25, 2018 10:27 pm

DanEmmy wrote:
Tue Sep 25, 2018 9:52 pm
Ah, its made out to "FIIOC FBO <wife's name>" so sounds right i guess.

Since we're rolling over her IRA into her 401k, she'll have about 60% of her retirement assets in this account. The other 40% are in her Roth IRA. But yep, we'll try to get it balanced out between the two. Here are all of her 401k fund choices:

Code: Select all

FID 500 INDEX IPR (FXAIX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	No additional fees apply.
This option is frozen and unavailable to new investors FID 500 INDEX PR (FUSVX) 02/17/1988 	Stock Investments 	Large Cap		0.015% 	No additional fees apply.
JH DISCPL VALUE R6 (JDVWX) 01/02/1997 	Stock Investments 	Large Cap		0.71% 	No additional fees apply.
TRP DIV GROWTH (PRDGX) 12/30/1992 	Stock Investments 	Large Cap		0.64% 	No additional fees apply.
TRP NEW AMERICA GRTH (PRWAX) 09/30/1985 	Stock Investments 	Large Cap		0.79% 	No additional fees apply.
COL MID CAP INDEX I2 (CPXRX) 03/31/2000 	Stock Investments 	Mid-Cap		0.27% 	No additional fees apply.
VOYA MID CAP OPPS I (NMCIX) 08/20/1998 	Stock Investments 	Mid-Cap		1% 	No additional fees apply.
GS SM CAP VALUE INST (GSSIX) 10/22/1992 	Stock Investments 	Small Cap		0.97% 	No additional fees apply.
PGIM J SMALL CO Z (PSCZX) 11/13/1980 	Stock Investments 	Small Cap		0.81% 	No additional fees apply.
PIF SMCP S&P600 INST (PSSIX) 12/06/2000 	Stock Investments 	Small Cap		0.22% 	No additional fees apply.
AF EUROPAC GROWTH R6 (RERGX) 04/16/1984 	Stock Investments 	International		0.49% 	No additional fees apply.
COL EMRG MKT I3 (CEKYX) 01/02/1998 	Stock Investments 	International		1.13% 	No additional fees apply.
Investments you currently own FID GLB XUS IDX PR (FSGDX) 09/08/2011 	Stock Investments 	International		0.06% 	No additional fees apply.
MFS INTL NEW DISC R4 (MIDJX) 10/09/1997 	Stock Investments 	International		1.06% 	No additional fees apply.
FA FREEDOM 2005 I (FFIVX) 11/06/2003 	Blended Investments 	N/A		0.49% 	No additional fees apply.
FA FREEDOM 2010 I (FCIFX) 07/24/2003 	Blended Investments 	N/A		0.53% 	No additional fees apply.
FA FREEDOM 2015 I (FFVIX) 11/06/2003 	Blended Investments 	N/A		0.57% 	No additional fees apply.
FA FREEDOM 2020 I (FDIFX) 07/24/2003 	Blended Investments 	N/A		0.61% 	No additional fees apply.
FA FREEDOM 2025 I (FITWX) 11/06/2003 	Blended Investments 	N/A		0.66% 	No additional fees apply.
FA FREEDOM 2030 I (FEFIX) 07/24/2003 	Blended Investments 	N/A		0.7% 	No additional fees apply.
FA FREEDOM 2035 I (FITHX) 11/06/2003 	Blended Investments 	N/A		0.74% 	No additional fees apply.
FA FREEDOM 2040 I (FIFFX) 07/24/2003 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2045 I (FFFIX) 06/01/2006 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2050 I (FFFPX) 06/01/2006 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2055 I (FHFIX) 06/01/2011 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM 2060 I (FDKQX) 08/05/2014 	Blended Investments 	N/A		0.75% 	No additional fees apply.
FA FREEDOM INC I (FIAFX) 07/24/2003 	Blended Investments 	N/A		0.47% 	No additional fees apply.
FID FDM IDX 2005 INV (FJIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2010 INV (FKIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2015 INV (FLIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2020 INV (FPIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2025 INV (FQIFX) 10/02/2009 	Blended Investments 	N/A		0.18% 	No additional fees apply.
FID FDM IDX 2030 INV (FXIFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2035 INV (FIHFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2040 INV (FBIFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2045 INV (FIOFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2050 INV (FIPFX) 10/02/2009 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2055 INV (FDEWX) 06/01/2011 	Blended Investments 	N/A		0.19% 	No additional fees apply.
FID FDM IDX 2060 INV (FDKLX) 08/05/2014 	Blended Investments 	N/A		0.19% 	No additional fees apply.
Investments you currently own FID FDM IDX INC INV (FIKFX) 10/02/2009 	Blended Investments 	N/A		0.17% 	No additional fees apply.
FRANKLIN INCOME ADV (FRIAX) 08/31/1948 	Blended Investments 	N/A		0.48% 	No additional fees apply.
AMCENT INFL-ADJBD IV (ACITX) 02/10/1997 	Bond Investments 	Income		0.47% 	No additional fees apply.
FKLN US GOVT SEC ADV (FUSAX) 05/29/1970 	Bond Investments 	Income		0.62% 	No additional fees apply.
LD ABT SH DRTN INC I (LLDYX) 11/04/1993 	Bond Investments 	Income		0.39% 	No additional fees apply.
LOOMIS BOND INST (LSBDX) 05/16/1991 	Bond Investments 	Income		0.66% 	No additional fees apply.
FID GOVT MMKT (SPAXX) 02/05/1990 7 day yield as of 08/31/2018   1.58% 	Short-Term Investments 	N/A		0.42% 	No additional fees apply. 
I recommend balancing the S&P 500 fund in your 401k with the S&P 600 small cap fund (PSSIX) in her 401k to better approximate Total Market.

User avatar
banhbao
Posts: 103
Joined: Mon Sep 10, 2018 7:54 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by banhbao » Wed Sep 26, 2018 8:14 am

student wrote:
Thu Aug 23, 2018 4:30 am
So instead of one total market fund, you use one large-cap, one mid-cap and one small-cap.
This is exactly what I did with my 401(k) because there wasn't a "total" option.

I chose to simulate the market as closely as possible:
  • 74% Large Cap
  • 19% Mid Cap
  • 7% Small Cap

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Thu Sep 27, 2018 9:03 pm

We deposited my wife's IRA check into her 401k today. You have to initiate a new rollover in NetBenefits and if you say you have a check you can mobile deposit it. Pretty nice. Now to figure out the funds.

One idea using portfoliovisualizer is:

60% FXAIX S&P 500 Index .015
10% PSSIX Small Cap 0.22
15% FSGDX International Index 0.06
15% FIKFX Income/bond thing 0.17

Average ER is 0.066

My AA would be:
72% US stock
16% Intl stock
7% US bonds
4.5% cash

And the US equities would be:
80% large cap
10% med cap
10% small cap

Seem reasonable? She basically has two big retirement accounts, the 401k and a Roth IRA about 50/50. I know i could span the AA across the two accounts more effectively... I'd want to pour equities into the Roth IRA first and then overflow the rest into the 401k, right? Are bond options in this 401k suitable? What about International equities?

Then i read this: https://thefinancebuff.com/stocks-or-bonds-in-roth.html
Which i don't fully understand (Myth #1), but basically it says to just AA with tax being accounted for in the 401k and otherwise it doesn't matter. So in that case maybe i should stick to the low ER S&P 500 Index in the 401k since the other options aren't super low ER. Her Roth IRA is at Vanguard and has lots of great options.

This is an exciting year and its starting to come together. Thanks again, all.

retiredjg
Posts: 39405
Joined: Thu Jan 10, 2008 12:56 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by retiredjg » Fri Sep 28, 2018 8:40 am

DanEmmy wrote:
Thu Sep 27, 2018 9:03 pm
Seem reasonable?
It's probably OK. We don't really know for sure because we have not seen the entire portfolio.

You apparently don't like the bond choices in Her 401k and using the FF Index fund with about 80% stocks is a reasonable substitute. You could also just increase the bonds in some other account, His 401k perhaps.

There is no need to have every asset class in every account. On the other hand, it doesn't hurt if you like to do it that way.

Good work - you've made progress. :happy

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Sat Oct 20, 2018 3:22 pm

Another update. Wife's backdoor Roth IRA contribution is complete.

I was able to transfer my Fidelity Rollover IRA to my TIAA-CREF 403b. That took a couple weeks because there was some paperwork and snail mail involved. Last week I opened a new Fidelity Traditional IRA and funded it with $5500. The cash has cleared my checking account and the transaction is complete at Fidelity. Today i tried to do the Transfer (https://www.dadsdollarsdebts.com/2018/0 ... tep-guide/) from the Traditional IRA to my existing Roth IRA, but Fidelity said i couldn't complete the transaction at this time. Do I need to wait longer? Or do i need to buy mutual funds in my tIRA first? Tutorials online always seem to show a step to buy funds before the conversion, but i don't know why that would matter. Any ideas on why that might not have worked? I'll call on Monday if need be.

Thanks again.

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Mon Oct 22, 2018 11:48 am

I tried the transfer again today and it still says the transaction cannot be complete, please try later or call a rep. Odd. Is it ok that i'm trying to transfer cash instead of a fund?

mhalley
Posts: 7914
Joined: Tue Nov 20, 2007 6:02 am

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by mhalley » Mon Oct 22, 2018 12:04 pm

For those that don't know, You don't need that much income to open a solo 401k. Drive a couple of days for Uber, sell a few things on eBay, mow a few lawns. Use fidelity as vanguard doesn't take rollovers.
Is the money in your settlement fund? Perhaps it hasn't cleared yet.

Topic Author
teamDE
Posts: 275
Joined: Tue Jun 28, 2016 9:16 pm

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

Post by teamDE » Thu Oct 25, 2018 7:05 pm

Apparently the money had to sit for 7 days before i could transfer it. But the good news is that i did successfully make the conversion and even by luck bought the $5500 of FZROX during yesterdays dip.

Both my wife's and my backdoor Roth IRA contributions are now complete. Thanks for the help, everyone! :sharebeer

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