tastethesaltinthesea OP t1_iudnoem wrote on October 30, 2022 at 3:20 PM

Reply to comment by HandyManPat in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

Those are great points. I feel really behind on understanding investments, taxable and non-taxable etc. I have a number of investments in Edward Jones (I know....) and I am really frustrated by EJ. Trying to get everything out of there. My EJ taxable accounts have the money in CWGIX and crap like that and I am just starting to understand tax efficient/inefficient mutual funds. Based on my research, CWGIX is not tax efficient and shouldn't be in a taxable account (after getting walloped by a big CG hit from this account last year).

So, I am trying to figure out how to get all of this money out of EJ and at the same time make it more tax efficient. I was planning to do 1) move it to Vanguard 2) sell the American funds junk and put into VTI, etc. I was thinking that getting it out of taxable accounts would also help. Maybe I am over-thinking but based on my last CG tax impact from my taxable account, I think that is going to seriously cut into my growth.

So, ultimately I am less concerned about the 22k and more concerned about reducing what is in my taxable account.

FYI, I am about 10 years away from retirement - hopefully.

tastethesaltinthesea OP t1_iud2q63 wrote on October 30, 2022 at 12:32 PM

Reply to comment by harrisc42 in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

Thanks!

tastethesaltinthesea OP t1_iud2mi8 wrote on October 30, 2022 at 12:31 PM

Reply to comment by Jibberishjoeb in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

Thanks for the advice! I don't think I contributed anything to the IRA after the initial rollover.

My employer does have a mega backdoor roth. Can I do each of these separately? A backdoor and a mega backdoor? The reason I would do both is I have a joint taxable investment account as well. Ideally, I think I would want to move that through the backdoor roth and then I could also contribute salary through the mega.

If I use the joint taxable account, I assume I could sell 6K each for my wife and I, fund the IRA and do backdoor? Is that correct? Any issues with that?

tastethesaltinthesea OP t1_iud1rx6 wrote on October 30, 2022 at 12:22 PM

Reply to comment by debbiewith2 in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

I didn't even think about that. Thanks! And I can convert all $22k at once, correct? The annual contribution limit to the IRA is $6k/$7k if I understand correctly, but if the IRA already has contributions I can just move the whole thing to Roth?

tastethesaltinthesea OP t1_iubvh6p wrote on October 30, 2022 at 3:28 AM

Reply to comment by Mashtatoes in Question about backdoor Roth with large Traditional IRA by tastethesaltinthesea

Thanks for the quick response! Is there any tax implication after I move the IRA to 401k? In other words, do I need to wait until the next year or anything before doing the backdoor roth?