Personal Investments • Re: Backdoor Roth Question

Hi, requesting advise on below. I have this question even after reading through Wiki.

1. I contributed the max of $7000 to my Roth IRA
2. Realized recently that because of my bonus, my income would be high to contribute to Roth
3. I got the amount distributed as excess contribution
4. I then thought about may be doing a backdoor Roth conversion
5. I realized now that I should have done a recharacterization of the amount as Traditional IRA contribution and then did a backdoor Roth
6. My traditional IRA has $0 in it. It was a rollover IRA and I had moved all of it back to my 401k before. So there are no tax concerns
7. When I go to my Traditional IRA and try to contribute, it says I've already contributed the max of $7000 this year
8. I called Vanguard support and they said I could answer "Yes" to the question of if it's a rollover or transfer from another IRA, and then contribute the amount. I'm thinking that it might be a bad idea as the amount might get double taxed when I move it to Roth IRA.

I'm thinking below are my options

1. Call Vanguard again and see if they allow me to contribute to the Traditional IRA as a normal yearly contribution and not as a transfer or rollover. I don't know if they had any limitation on it as they didn't suggest this option last time I called
2. May be open new accounts in Fidelity just for this. My 401k is already with them.
3. Or don't bother with the hassle. I already do a mega backdoor at my work and may be just skip it for this year to not overcomplicate it. I don't know if $7000 in Roth vs Taxable is worth all this hassle.

Would appreciate any suggestions. Thank you.

Statistics: Posted by toddthebod — Thu Oct 31, 2024 11:44 pm