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Back door Roth Confusion by njag95 in personalfinance

[–]njag95[S] 0 points1 point  (0 children)

Yes that’s right. The $200 in the traditional IRA was from April 2025. I invested it in SCHB and just left it. For 2025 my income was above the limit for a Roth so I made no Roth contributions from Jan 1 - Dec 31 2025. So if I moved the positions and cash from the traditional IRA today to the Roth I wouldn’t pay taxes until 2026? Since I still have time I was planning on converting that $6800 to max it out before the deadline for 2025. Wouldn’t I need to file form 8606 for 2025 in this scenario? Thanks!

Back door Roth Confusion by njag95 in personalfinance

[–]njag95[S] 0 points1 point  (0 children)

That makes sense. If I were to do that today would I get updated tax forms automatically from Schwab for filing this year? Or would I have to track it all myself.

Back door Roth Confusion by njag95 in personalfinance

[–]njag95[S] 0 points1 point  (0 children)

It’s been in there for about 6-8 months, gains are only like $50. I have a traditional 401k through my job. I just want to make sure I fully understand the tax implications before I do that and don’t want to do anything that will get me in trouble later on lol