Please consider the following scenario for a Traditional IRA to Roth IRA conversion using Betterment.
- A Traditional IRA account was created & funded with $6000.
- After a week, the account balance was $6012.
- A backdoor Roth IRA conversion was initiated.
- At the time of conversion, the balance was $6020.
Which of the following apply?
- Is account balance of $6020 considered as the contribution to Roth IRA or the contribution of original $6000 considered?
- Do we need to withdraw $20 so that the limit of $6000 (for Roth IRA) is satisfied?