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Hello everyone: Looks like I have a dilemma and looking for a little help /advice. A little background I left my job in 2012 and rolled over my 401K into a Vanguard IRA as well as opening a Roth IRA for my wife and I. I placed the maximum contribution in the Roth for 2015 quite happy with their performance. My New employer 401 k is maxed out and going good as well and is with Charles Swab.
Now for the problem. Looks like between my wife and I we will make to much money for the Roth IRA's. Except that I already invested the 2015 maximum amount. I started to read the IRS rules and back door Roth and ran in to the Pro rata distribution. I called a local CPA and I believe he knew less than I did.
It seems if I understand the 2015 Roth contribution is absorbed in my traditional IRA in which I end up pay tax of 90% than I can transfer via back door roth.
There is a loop hole that I can transfer my Vanguard IRA balance to my 401K at Charles Swab than all I have to pay is the tax on the interest (capital gains)in the Roth for 2015. But the more I read the more confused I keep getting
Hoping someone can shed some light on this or point me in the right direction. sorry its a bit long I can provide any additional information anyone needs. Thanks in advanced
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