Just like the title suggests, I need a little guidance on a backdoor. This is my first time doing a backdoor, so go easy on me.
I have contributed $2,000 to my Roth this year but with upcoming bonuses, I should end in the ballpark of about ~$139,000 MAGI, so I want to contribute my remaining $4000 to my tIRA and then recharacterize that into my Roth.
The issue I’m running into is this:
When I was first getting into investing, I (negligently) put about $130 (nondeductible) into my tIRA (I filed my 8606 for this, but never rolled it into my Roth).
Moving forward, when I fill out my 8606 to report the $4,000 nondeductible, will I have an issue with my cost basis? And should/could I roll this $130 into my Roth (and should/could I do this at the same time, or separately from the backdoor)?
Thanks in advance! Like I said, I’m rather new at this and there’s always a bunch of good information going around here, figured I’d ask.
EDIT: The $130 in my tIRA is invested solely in my company’s stock, which is down about 20% as of right now. There have been no other contributions to my tIRA.
Submitted June 18, 2022 at 03:20AM by DiDOMG https://ift.tt/ePclQmN
