This is just semantics, right?
Yes and no.
Functionally we are talking about the same thing?
Yes it will be a conversion of traditional funds to Roth, but there will be differences.
If I want to do this online through Vanguard's website (rather than calling them) it wouldn't be any different than the regular roth conversions I've done online in the past, correct?
The conversion mechanics will be the same, but...
The money we backdoor roth this year will behave just like a regular conversion in that gains won't be accessible for 5 years, correct?
No.
Herein lies the difference. In the
Backdoor Roth process (you should read that wiki if you haven't) there are two active steps:
1) Make a traditional contribution
2) Convert that to Roth
The differences come in the tax treatment and documentation:
1) You don't deduct the traditional contribution
2) You do file form 8606, and you should understand that form to see if there will be any "pro-rata" effects (due to any pre-tax amount in any non-Roth IRA at the end of the year) before you do the conversion.
3) Any non-taxable amount of the conversion may be withdrawn from the Roth without tax or penalty when you reach that point in Roth distribution ordering. See the "Conversions, nontaxable portion" row in the
Treatment of distributions summarized in table form.