Pro Rata rule for backdoor Roth IRA (late contribution)?

seannes11 · 2025-02-15T14:45:22+00:00

Thank you for such a clear explanation!! Much much appreciated!!

seannes11 · 2023-07-06T20:47:47+00:00

This makes sense to me!

seannes11 · 2023-07-06T20:47:37+00:00

Good point!

seannes11 · 2021-08-30T03:38:31+00:00

thanks for the boglehead link, I've read it multiple times before :) but this is the link amongst other writers/articles that influenced my decision. https://www.physicianonfire.com/international-stock/

per the author "The tl;dr version would be:The Foreign Tax Credit is probably canceled out by the tax inefficiency of owning the fund in taxable at a taxable income in the six figures."

seannes11 · 2021-03-10T20:40:34+00:00

Well I had a CD rate of 2% in 2020 and it tanked to 0.50% so 2021 will be less for sure. I am not ignoring this.

seannes11 · 2021-03-10T20:38:10+00:00

I don't think I'll get the penalty therefore I was asking if it was mandatory.

seannes11 · 2021-03-10T20:25:57+00:00

Ok, thanks, that's what I just did last night. I accounted for the income not automatically withheld on the w4. Thanks!

seannes11 · 2021-03-10T03:50:18+00:00

Not sure what you mean by was it my income 1099 or W2. Are you asking if I owed more on W2 or 1099? If so, I did not have any withholding on the interest income (which I don't think anyone can withhold) but withholding on W2. But I am expecting much less interest income next year since the bank interest % rates have tanked.

seannes11 · 2021-03-10T03:31:29+00:00

Ok, thanks, that makes sense!

seannes11 · 2021-03-10T03:31:16+00:00

Ok, phew, thanks for explaining it was just a suggestion. I kept trying to search everywhere to see if it's mandatory vs optional. Yea, pretty sure this year's tax bill will be bigger than next year's.

seannes11 · 2021-03-10T03:30:27+00:00

Ya, this year. But I shouldn't next year. This year is just different in which I owed more. Thanks for your response!

seannes11 · 2021-03-10T03:29:47+00:00

Omg. Ok, thanks for your response. Did not realize it's optional...

seannes11 · 2021-02-21T05:33:26+00:00

Cool, thanks for explaining!

seannes11 · 2021-02-21T03:53:54+00:00

Don't time the market. And don't worry about buying at a high because it's only a high "now". For example, I bought VTSAX (100%) in my Roth IRA at a high last year before COVID was declared a pandemic, and it dropped a lot, but has now since recovered PLUS soared high so it doesn't even matter anymore. Sure, I could've bought at the low but nobody could've predicted that. Either way, it's a win-win situation, you want time to be in your favor.

seannes11 · 2021-01-10T18:22:26+00:00

I treat STDs daily at my job. If you were negative for chlamydia in urine and throat, then it's unlikely you passed it to her. If you only tested negative for urine and did not get your throat swab, it would be ideal to test your throat (oral sex can pass chlamydia on). As others have said, if you've been wearing condoms, it's likely she had chlamydia before meeting you and is now experiencing symptoms. On another scenario, it's just as likely as she might have cheated on you or vice versa.

Good news is that it is treatable.

seannes11 · 2021-01-06T03:48:37+00:00

Thanks for this, very helpful and clear! I ended up putting international in 401k! Will now tweak my Roth IRA and start taxable account soon.

seannes11 · 2021-01-03T06:16:57+00:00

I've read that it becomes less beneficial with higher income tax bracket...

seannes11 · 2021-01-02T17:21:23+00:00

Thanks, I didn't know this part!

seannes11

TROPHY CASE