Personal Investments • interest received in IRA during backdoor Roth

I'm doing a backdoor Roth and I received something like $6 in interest in the traditional IRA before the rollover was complete. Can I transfer this money out of the tIRA without paying the 10% penalty to avoid future pro-rata taxes?

I know the fee is just $0.60, so it doesn't really matter, but it would be nice to avoid tax complication as well.

Just convert 100% of the tIRA to Roth. There is no limit on the amount of $$ converted to Roth. You will owe taxes, but no penalty, on the gains if you convert.

Statistics: Posted by barcharcraz — Fri Jan 05, 2024 4:24 am — Replies 2 — Views 42