Jan 2017: Hubs: Salary: $84,000 Pre-Tax 401K deductions: $18K HSA: $2,900 (employer contributes $500) | Me: Salary: $99,000 Pre-Tax 401K deductions: $18K HSA: $2,900 (employer contributes $500) |
April 2017: Hubs: Salary: $84,000 Pre-Tax 401K deductions: $18K HSA: $2,900 (employer contributes $500) | Me: Salary: $107,200 Pre-Tax 401K deductions: $18K After-Tax Converted to Roth 401K deductions: $24,656 HSA: $2,900 (employer contributes $500) |
what do you do if the money has already been invested as Roth since the beginning of the year, has had substantial gains, is all mixed in with your older/legal Roth monies, and may become illegal by year end? What fees/taxes might be involved in that process and how messy/time consuming is it? Thank youuuuuuuu.
Both of our IRAs are with Vanguard invested 100% VTSAX, if it matters. I realize that in order to a backdoor Roth IRA we would contribute $5500 into a traditional IRA and then convert it to Roth the next day (and that is what we would do next year if our income exceeds the limits) but what do you do if the money has already been invested as Roth since the beginning of the year, has had substantial gains, is all mixed in with your older/legal Roth monies, and may become illegal by year end? What fees/taxes might be involved in that process and how messy/time consuming is it? Thank youuuuuuuu.