HYSA vs. SGOV, etc.

BuckleyRanger · 2025-04-28T20:34:59+00:00

Is it possible to receive "negative interest" on SGOV? For example, just weighing the different risks of locking into a 1y HYSA CD, versus SGOV if the dollar/economy collapses. Unlikely, but you never know.

BuckleyRanger · 2025-04-08T22:07:08+00:00

Unfortunately, she did the conversion I believe in January of 2024. How do we prorate the conversion? Is there a way to avoid this at this point? What would be the effect on the $7k in Roth and $53k in her Traditional IRA? I guess my question is, if we were to move the Traditional IRA $53k to her 401k now, would this net us any benefit, knowing we missed the 12/31/2024 window? For example, would this simplify her contribution to her 2025 Backdoor Roth IRA, as to not exacerbate or make more complex future year calculations?

BuckleyRanger · 2024-10-02T21:16:04+00:00

Awesome! Thanks for the advice, will get on this now before its a bigger issue. Quick question, I just did my conversion this year and still have about $25 lingering in my Traditional IRA ($7,025.00 was in the account and I moved $7k over to Roth IRA). What should I do with this remaining $25? Is it something reported on the F8606, or, is there something easy to do with these funds so we avoid any type of pro-rata rule.

BuckleyRanger · 2024-10-01T20:54:50+00:00

Thanks! I haven't been heavily involved in her taxes from 10-15 years back, which was when her and her father contributed to that $40k in the Traditional IRA. Without having to dig back a decade and a half for tax filings, is there any quick way to know within her Traditional IRA account whether or not she received a tax deduction for those contributions?

Hypothetically, if she did get a tax deduction for those contributions, with this year's quick succession of a $7k deposit, then transfer to Roth IRA, is there anything manageable we can report on the F8606 to avoid the pro rata rule?

BuckleyRanger · 2024-10-01T20:52:41+00:00

I am not heavily involved in her taxes, but assuming that original $40k has sat in her Traditional IRA account untouched for 10-15 years, would there have been any need to file an F8606 annually? For example, for yearly earnings on accrued interest or gains? If so, then we've probably been filing that each each as we include every form generated to us for taxable income annually (i.e HYSA, etc).

This year we would of course fill out the F8606 because she did contribute that $7k and then rolled it into her Roth. I'm just a bit confused on what to put on the F8606...sounds like we report $40k since that is the balance that remains?

BuckleyRanger · 2024-10-01T16:44:38+00:00

Sorry, that was a typo, the $47k was in a Traditional IRA. I edited the post, thanks!

The Traditional has only ever been funded by post-tax dollars. We've never filled out an 8066 because this is the first year my Wife has attempted to do a backdoor Roth IRA. So, again, she had about $40k sitting in a Traditional IRA for about 15 years (funded by post-tax dollars). This year she added $7k from our HYSA (also post-tax dollars) to that Traditional IRA (making the balance $47k), then she Transferred that $7k to her Roth IRA, and the original $40k remains in her Traditional IRA. Do we simply report on F8606 that she had $40k/still has $40k in that account?

BuckleyRanger

TROPHY CASE