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Well if you’ve been doing mega backdoor, what fidelity is telling you is that you still can also do regular backdoor Roth through a traditions IRA then converted to Roth. They are different processes
Awesome, thanks IBM1! I have to read up on how backdoor IRA works but I’m assuming I can use my existing Roth IRA account to take advantage of this.
Is there any other opportunity for me to contribute to an IRA that I’m missing here? My salary is in 150-200k range.
Chief
If you are doing the backdoor, don't you need to have a traditional IRA and Roth IRA to do the contribution than conversion?
The contribution is subject to the $6k limit. I don't think there is a limit on the conversion as long as you are okay paying whatever taxes may be due. For example, if you have $20k of contribution and gains sitting in an traditional IRA, you might want to convert that the year you went to school full-time to minimize your tax liability. At least that's what I've heard 😂
Chief
Oops, didn't see that you said mega backdoor door. I do the mega back door but my funds stay in my 401k account.
The answer below is correct. Your mega backdoor funds do not count towards the $6k limit. Conversions and transfers don't count towards the limit. It's the initial contributions that count.
Conversions aren’t contributions. You can contribute backdoor it sounds like, so it’ll be coded as a conversion. You shouldn’t see contribs
Rising Star
You can just backdoor $6k of cash into the Roth.