Personal Investments • 401K / IRA / Roth IRA Consolidations

We do not have traditional IRA's and we do not have alot of $ in Roth so would like to convert / contribute / backdoor into Roth's maybe next year when in a lower tax bracket.

It sounds to me like you are interested in doing Roth conversions, not backdoor Roth. The terminology is confusing, but these are not the same thing.

• A Roth conversion simply converts traditional IRA money into Roth IRA by paying taxes.
  
  Backdoor Roth refers to a process used to contribute to Roth IRA by people who make too much money to contribute directly to Roth IRA. It starts with a non-deductible contribution to tIRA which is then converted to Roth IRA.

If she is or will in the future be using backdoor Roth method to contribute to Roth IRA, she probably does not want to roll these old plans into a traditional IRA.

If she is just considering converting pre-tax traditional IRA to Roth, rolling the old plans into traditional IRA is fine.

I don't understand the nuances, but can we just rollover her 401k's to Fidelity and keep them as 401k accounts instead of traditional and not tied to the company plans?

Not usually. If she has a side job that produces income, she could open a Solo 401k for the side job and roll the old 401k plans into the Solo 401k.

Statistics: Posted by retiredjg — Sat Jun 22, 2024 7:25 am — Replies 4 — Views 349

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