Starting a backdoor Roth IRA
I'm going to be doing a backdoor Roth for the first time this year. Actually my wife and I will both be doing this.
I currently have a pretax rollover IRA that I am going to be rolling over to my current 401K so that I won't have any pretax IRA money in the mix. Once this is done, I will only have a brokerage account and my 401K.
My brokerage is through Etrade, and I'd like to stay with them for the IRA. The money to fund the IRA will be pulled from my brokerage account. The way I understand it is that I will open up a traditional IRA and transfer in aftertax money from the brokerage account. Then I will open up a Roth IRA and then roll over the tIRA into the Roth IRA. Is this correct? There are no issues with having it all done through the same broker, right?
And we'll be doing the same thing with my wife as well.
Do I need to wait a specific amount of time after rolling over my pretax traditional IRA into my 401K to do this? Or once the IRA is rolled over, I'm good to go?