Hello all,
Seeking some advice from fellow Mustachians.
First, a bit about me. I'm 26 years old, work in the technology sector, and am fortunate to have a high paying job. In 2018, my Adjusted Gross Income (AGI) was ~$193,000, making me ineligible for a Roth IRA contribution.
In 2018, I had a 79% savings rate. I maxed out my 401k contributions ($18,500), contributed to a taxable investment account ($26,000), and contributed, for the first time, to a traditional IRA ($5,500). All of my investments are with Vanguard.
My current traditional IRA balance stands at $5,586.
I'm still new to retirement planning and investing, but have been reading about the Backdoor Roth IRA this week. Unless I'm missing some critical decision points, it seems like a no brainer. My plan is to open a Roth IRA account with Vanguard, make the backdoor Roth contribution for the full value of my Traditional IRA, and then file form 8606 to report this on my taxes (which should not be affected by the process if I understand correctly). After this transactions clears, I plan to front-load my 2019 tIRA contribution and follow the same Backdoor Roth contribution process.
Am I missing something?