A Step by Step Guide with Fidelity

It’s a great way for high-income professionals to contribute to a Roth IRA when earning “too much” to contribute directly to a Roth IRA.

This story will give you a brief overview of the backdoor Roth, precise step-by-step instructions on how to do this yourself at Fidelity.

A Step by Step Guide with Fidelity

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The first step in the process is opening a traditional IRA with Fidelity if you don’t already have one. This works like opening any other Fidelity account.

Open A Traditional IRA

You’ll need to wait at least a day for the funds contributed to your traditional IRA to post. You’ll also have to wait for them to clear if you transferred them in from an external bank and did not use money already living at Fidelity.

Fund the Roth IRA

If you’re married, your spouse can also do the backdoor Roth, even if he or she has no earned income.

Spousal Roth IRA

At tax time, you will report these moves in IRS From 8606. The IRS has instructions and form.

Fill out Form 8606 in your 1040

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