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USER987456
February 28, 2025
Question

Backdoor Roth Interest

  • February 28, 2025
  • 1 reply
  • 0 views

When it was time to roll over the backdoor Roth last year after a few days there was $4 interest along with the $7000 contribution. Do I need to withdraw this or does it not reach the level where is it excess? Not sure what steps to take! Thank you

    1 reply

    D
    DanaB27
    February 28, 2025

    No, you do not need to withdraw the $4, this is not an excess contribution. Earnings will be taxable income when you convert it to the Roth IRA.

     

    Please see How do I enter a backdoor Roth IRA conversion? for additional information.

     

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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    Employee
    February 28, 2025

    the proper action is to convert $7,004 or 100% to your Roth IRA.

    Then you can use the "backdoor" again next year.

     

    @USER987456 

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