Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
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
Bob
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.