Backdoor Roth Ira Vanguard Steps

Backdoor roth tutorial steps.

Backdoor roth ira vanguard steps. Make a non deductible ira contribution. 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. To begin this backdoor roth tutorial first off you need to open a traditional ira and roth account with whatever mutual fund company you have.

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. Talking about it is pretty easy but i wanted to show you what it should look like through fidelity. Convert to roth mutual fund account. Here s how i make my backdoor roth conversion with vanguard.

Navigate to vanguard website the first step is the most intuitive. Open a vanguard ira and roth ira account in order to do a backdoor roth conversion you ll need both a traditional. Fidelity and vanguard are one of the more popular choices. You can use the same traditional ira accounts every year they just spend most of the time with 0 in it.

The conversion would be part of a 2 step process often referred to as a backdoor strategy. Then move the money into a roth ira using a roth conversion. Step by step tutorial for first backdoor roth ira step 1. In vanguard i contributed 6k for me to a traditional ira for 2019 step one of the back door.

If you haven t done so already you ll need to open a traditional ira. 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. First place your contribution in a traditional ira which has no income limits.