Backdoor Roth Ira Vanguard Steps

Navigate to vanguard website the first step is the most intuitive.

Backdoor roth ira vanguard steps. Head on over to the vanguard personal. Contribute 5 500 to your ira account after you have your ira setup the next step is to add some funds to it. Talking about it is pretty easy but i wanted to show you what it should look like through fidelity. If you haven t done so already you ll need to open a traditional ira.

The conversion would be part of a 2 step process often referred to as a backdoor strategy. A backdoor roth can be created by first contributing to a traditional ira and then immediately converting it to a roth ira to avoid paying taxes on any earnings or having earnings that put you. First place your contribution in a traditional ira which has no income limits. Step by step tutorial for first backdoor roth ira step 1.

Fidelity and vanguard are one of the more popular choices. Backdoor roth tutorial steps. Make a non deductible ira contribution. Why perform a backdoor roth ira conversion.

Then move the money into a roth ira using a roth conversion. Open a vanguard ira and roth ira account in order to do a backdoor roth conversion you ll need both a traditional. Convert to roth mutual fund account. Here s how i make my backdoor roth conversion with vanguard.

5 steps to making the backdoor roth ira contribution step 1 contribute to your traditional ira make a 6000 7000 if over 50 non deductible traditional ira contribution for yourself and one for your spouse. I just went back and looked at my 2019 taxes and realized my magi is actually just under the limits allowed to contribute directly to a roth ira under any phase out amount. But make sure you understand the tax consequences before using this strategy.