Got Weaselette all set up. Just had to make it clear that an ETF is not the same as a mutual fund and we were good to go. Will be looking out for the easy $15k to show up in the account.
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I feel the same way. 3% of $X is tempting, but first Iād have to figure out how to set up and use a RH accountā¦ then Iād have to figure out how to roll over my IRAā¦ then Iād have to figure out how I want to reinvest any assets that RH doesnāt acceptā¦ then Iād have to verify I received the 3% matchā¦ then Iād have to figure out how to downgrade my RH account after one yearā¦ then Iād have to figure out if there are any tax implicationsā¦ then Iād have to figure out how to roll my IRA back after five years.
Iām sure for people who have already done most of these things, it seems easy. (Iām sure RH has a swell app.) But to me it seems like a huge hassle. And X isnāt that large for me, anyway.
Alright, I may as well throw out my question here.
We recently shot past the Roth IRA contribution limit and are now flirting with entirely losing the deduction for a Traditional IRA. I expect weāll bypass it within a year. So, I want to backdoor Roth which weāve never done.
I have about $50k in a Traditional IRA.
Iām thinking I just need to push that $50k over to Roth, which will incur taxes on the entire amount, then going forward it should be no issue to contribute to Traditional and immediately reclassify as Roth.
Planned to put more research into this following my exam. Anything that stands out as me misunderstanding? I understand that keeping the Traditional balance makes things weird and suboptimal, but donāt know the details. Iām comfortable with my IRA being 100% Roth and having my 401k carry the Traditional side, as I plan to have both in retirement.
Yes, if you have no Traditional IRA balance (because you already converted to ROTH and all other retirement is in non-IRA accounts) then you can do non-deductible IRA contribution and immediate conversion to ROTH each year. Unless and until they change current law.
Thank you. But the existing Traditional balance does mess it up. I canāt keep that balance and add the max and convert the max, without things I donāt want occurring. So really I should reclassify all of my Traditional soon, so I can add/convert my amount for this year.
Correct if you have any Traditional IRA at year end you have prorate the conversion between pre-tax and after tax by aggregating all your traditional IRA accounts which can get messy tracking the basis if you donāt keep rally good records. Not usually a problem for folks on an actuarial board but messy for the general public.
Also if you later roll say a 401(k) account because you switch jobs into a traditional rollover IRA that can mess up your back door ROTH strategy at that point.
This isnāt specific to robinhood so maybe not the best thread
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Rolling over an IRA is pretty simple. Having done a few, in most cases you just fill out some online forms and it happens quickly. Only in one case the IRA I was transferring required more paperwork, including a physically signed form and a copy of the most recent statement.
The rollover mechanics didnāt concern me. Locking up my money for 5 years was the big issue for me.
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If i have a contributory after tax plan for some years and a 401k for others, should i keep them separate? Would that require two accts at robinhood, and would both have to be gold or whatever?
I agree w YTās take on it.
the prorata thingt and the part @notreallyme mentioned about RH are what kept me from moving my old job 401k into the RH IRA. $9K for free is nice, sure. but it would have spoiled my 10 years of simple backdoor conversion. i need simpler when I can.
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I tried going online and just directly transferring over. No luck. The entity that has my IRA either doesnāt have a DTC number (possible - itās a pension administrator, not a brokerage ā¦ but Iād still think it has a DTC number) or I canāt dig it out of anywhere. Going to see if I can do a ādirectā transfer by asking the current holder to transfer / have RH do its part to help with the request.
Probably not worth the hassle of a new brokerage much for those who havenāt been investing for an extended period of time
But I assure you the transfer is seamless and there is a similar alternative to most mutual funds RH wonāt accept (you can always try and do a partial transfer)
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Yeah if you want to make backdoor roth ira conversion and have existing traditional ira balance it will be a hassle come tax time but it also eats into your tax savings
$50k is a solid chunk, I would roll it into your workplace 401k if they allow for it
Otherwise yeah, may as well rothify if you have 10+ years to retirement
Not really seeing how a Roth transfers over in RH
Myself I would just bypass the Roth IRA going forward. Max out the Roth 401k and HSA if you can and then put any additional investments in tax efficient brokerage (unsheltered) accounts.
If you want to continue making Roth IRA contributions then you should pay the tax and convert the trad IRA to Roth. I donāt think that option is worthwhile for most people.
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Just got another $10,393 in matching, got my last employer 401k in there.
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Trying to finalize my rollover from Fidelity. There is about $9000 in a money market fund that might have to get liquidated before it transfers. Not sure if that will happen in time
I paid $25 to have the checks expedited to me and another $30 to have them expedited to Robinhood. They acknowledged it the next day but it was 3-4 days before the checks cleared and the match was there, you may be too late.
Not a huge deal if it doesnāt get there in time, the bulk of it was in cash and I think that got over ok
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Thanks for suggesting this. I moved my accounts over and got the bonus in the last week it was available. Did not move my partnerās (much smaller) accounts because I couldnāt bring myself to put all of our accounts in this particular single basket.
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RH now offering a 1% match on brokerage transfers. Iāve got some FZROX that I donāt want to sell, but Iām gonna see if I can transfer the rest.
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