slowsaver
Recycles dryer sheets
I used the backdoor Roth method to put $5k/yr into a Roth IRA at Vanguard between 2008-2013 (5 yrs). I paid no taxes on the transfers because I didn't realize that the $100k traditional IRA I had at Fidelity needed to be considered. I claimed 100% of the $5k tax free each year. That was wrong.
Once I realized my error (in 2013), I stopped doing any backdoor roth and haven't touched the roth account since. Just waiting for a letter from the IRS...
Well, it's been 8 years and the IRS still hasn't contacted me.
So, did I get away with this? Or, is this going to hit me when I try to take money out of the roth in 10 or 20 years? I'm actually thinking about leaving the roth to someone when I die, rather than touch it and trigger some tax skeleton in my closet.
Once I realized my error (in 2013), I stopped doing any backdoor roth and haven't touched the roth account since. Just waiting for a letter from the IRS...
Well, it's been 8 years and the IRS still hasn't contacted me.
So, did I get away with this? Or, is this going to hit me when I try to take money out of the roth in 10 or 20 years? I'm actually thinking about leaving the roth to someone when I die, rather than touch it and trigger some tax skeleton in my closet.