The process should be similar with other brokerages, but the screenshots will obviously look different. ![]() Vanguard is the company I use, and it’s one that tends to be favored among many index fund investors, so that’s what you’ll see here. I like to get ours done early in the year to start the tax-free earnings as soon as possible, but, barring any new laws in early 2022, you have until Tax Day in mid-April, 2022 to complete a 2021 Backdoor Roth contribution. I transitioned to a “brokerage IRA account” as requested by Vanguard a few years back, while my wife’s account remains a “mutual fund IRA account.” The latter makes things quicker and easier, although now, there only seems to be a one-day difference between the two different processes for the different account types. This post has been updated with fresh screenshots from our 2022 contributions and will soon be updated with the conversions. I’ll give you a brief overview, precise step-by-step instructions on how to do this yourself, and a link to a backdoor Roth FAQ that should answer any lingering questions you have. I personally decided to make my backdoor Roth contribution and conversion early in 2022, but I do so knowing that there’s a possibility I may have to somehow undo it if Congress forces my hand. ![]() ![]() My best guess is that any changes will be more likely delayed until 2023 or not enforced until the bill were to become law. Although the Build Back Better bill stalled in December of 2021, it could be passed in 2022, and there is some precedent for new tax laws to be retroactive to the beginning of the year. It’s important to note that if legislation proposed in September, 2021 becomes law, the backdoor Roth could soon cease to be an option for high-income households.
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