Backdoor Roth IRA Sign Up

[apraka24]

Hello, I was wondering how would I go about signing up for a backdoor Roth IRA? I am over the individual threshold and was wondering if it is an extensive process and if there are any fees I would have to pay?

Thank you

[Jeremy (Jeremy Schneider)]

Welcome @apraka24!

Here’s an overview of how the process works. It’s not especially extensive, and there shouldn’t be an additional fees, but there is a “got ya”, if you already have any existing pre-tax money in any IRAs:

Backdoor Roth with traditional IRA

So, to keep things in perspective, you guys make SO MUCH MONEY you’re not legally allowed to contribute to a Roth IRA. Plus, you both have 401ks which offer $19,500 of tax deferred contributions each. That’s $39,000/year plowing into tax advantaged retirement accounts. So the whole Backdoor Roth IRA is just a possible optimization to maybe get $6K/year each more into a tax advantaged state. Even if you never did that, you would likely be in very good shape. (You can always invest an unlimited am…