JAHMDParticipantStatus: PhysicianPosts: 1Joined: 01/08/2019
I am completing my annual Backdoor Roth conversion and ran into an issue this year, which I am not sure is a problem. Vanguard recently had me change my IRA accounts to brokerage accounts which is the only difference from last year. I did my usual transfer of $6000 to tIRA to a Prime MM fund with the plan to convert once posted to rIRA. Typically it sits one day without any problem, but this year for some reason I earned 1st $1.57 of dividends (?) in 1 day and before it could be posted into rIRA another $0.40. Not big sums, but I need to keep tIRA at $0 for the pro rata. What do I do with this change? Does anyone know why this happened and how I prevent it in the future? Not big sums and I’m sure not going to cause terrible tax ramifications, but a little upset by the change and making something so simple not seemingly more complicated.
Thanks for any advice.January 8, 2019 at 7:45 pm MST #179693PedsParticipantStatus: PhysicianPosts: 2374Joined: 01/08/2016
Convert it all.January 8, 2019 at 7:50 pm MST #179752CordMcNallyParticipantStatus: PhysicianPosts: 1192Joined: 01/03/2017
Make sure you convert it all to your Roth IRA. You’ll pay taxes on the few dollars you’ve made. Not a big deal.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorJanuary 8, 2019 at 7:51 pm MST #179753