Vanguard Brokerage Account

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  • Avatar JAHMD 
    Status: Physician
    Posts: 1
    Joined: 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.

    #179693 Reply
    Avatar Peds 
    Status: Physician
    Posts: 3791
    Joined: 01/08/2016

    Convert it all.

    #179752 Reply
    CordMcNally CordMcNally 
    Status: Physician
    Posts: 2255
    Joined: 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 Investor

    #179753 Reply

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