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How often would one need to use a backdoor Roth contribution? Seems like something you would need to execute every year.
by 40acres 10y ago
How often would one need to use a backdoor Roth contribution? Seems like something you would need to execute every year.
- rpais 10y agoYep, you do it every year.
- idunno246 10y agoyea, you do it every year. its maybe ten more minutes of work than contributing to a just a tIRA, which you're doing every year anyway if you contribute to IRAs. like the above said, the only downside is hiding rolled over money in an expensive 401k or having to pay taxes on it
- jeremy_k 10y agoI do it through Vanguard and it takes roughly 10 minutes. The process is nothing more than clicking buttons to put money into a tIRA, transfer to a Roth IRA, and purchase shares. Although it is suggested to leave the money in the tIRA for some amount of time (some say others, other weeks) before doing the transfer. You have a yearly contribution limit of $5500 and you're correct in that you would do this process every year.