Long story short.
I made a $2500 contribution to Roth IRA at Fidelity at the beginning of the year in Jan, and invested about $1000 of out of this $2500, expecting my income level would remain the same as the last year.
However, with a huge bonus coming in Feb and a significant raise in pay with a job change, I will be well over the MAGI threshold allowed for Roth IRA.
I plan to back door a $6000 from a traditional IRA into the Roth, but my questions are
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Should I withdraw the initial $2500 contributed in Jan from Fidelity?
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If I back door, the traditional IRA is at Schwab. Can I still back door into Fidelity in the full $6000 after withdrawing $2500?
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The $1000 investment out of the $2500 doesn’t have too much gains at this moment. Is there any special statement I need to make to IRS next year to explain the situation?
Submitted February 20, 2021 at 02:54AM by malamoji https://ift.tt/3azYJuY
