[Cynthia]

Hi, I’m a in a pickle because of Fidelity. Last year 2024, while doing my backdoor roth, I initiated the transfer from Traditional > Roth IRA account for the 7K.

The system said it was successful on Dec 26th and I thought everything was fine. Fidelity apparently has a “Hold” period now and the funds didnt move into my Roth IRA.

My Traditional IRA account still says I have 7k and now is accruing interest.

I called fidelity and they said the hold is a new thing they’ve done in Nov and so I have to wait until Jan 18 and thats the date my funds will move to my Roth IRA account.

Now my issue is we’re well over the MAGI limits so I’m not just doing a conversion. I am doing a Backdoor.

Which means my contribution for 2024 is now moot?

So if the funds move to Roth IRA on Jan 18th 2025, is that the backdoor conversion for 2025 rather than 2024?

Is there any hack to solve this? Im also now concerned that the pro rata rule will trigger since my Traditional IRA was not zeroed at the beginning on this year Jan 1,2025.

I’ve not encountered this situation and feeling like kicking myself for not doing it earlier and waiting till dec.

Can someone explain what I should do now like I’m a 5year old? What should be my step by step next steps?

[Sean]

Wait until the hold period is over, transfer all of the money from traditional to Roth, you’ll owe taxes on the growth, and move on.

I understand it’s stressful but you’re over complicating it. Also, even if you hadn’t contributed in 2024 for tax year 2024, which you have, you have until tax day this year to contribute for 2024.

So, either way you would be fine, but you already did the 2024 contribution, the conversion can be done at any time in the future.

You can even contribute right now for 2025 if you want and convert it all at once.

[Marisa]

Since you can contribute to an Ira for the previous year up until tax day you should be fine if it’s noted as a 2024 conversion

[AJ]

I’m in this same boat with a new IRA we did for my wife in 2024. We save a fixed amount per month in order to fund and convert into a backdoor ROTH at the end of the year.

I’ve been doing this myself for a few years without issue, but this year when we did hers it said the funds wouldn’t be available for withdrawal (and thus conversion) until sometime in mid January.

Fidelity shows the money as applied to the 2024 max, so I’m thinking and hopeful that when I can convert it in a week or so, that all is still fine.

But I’m not convinced yet and guess we’ll see.

[Jason]

You’re going to be fine. you can contribute up until the time that you find taxes.

The next year.

[Lucy]

You should call fidelity and have them walk you through it but I imagine if it lands in your Roth in 2025 then it will count for 2025 and not 24.

I’m sorry.

Definitely best to do the backdoor first thing in January for each year

[Alison]

You have until tax day in 2025 and it can still count as for the year before.

I do my backdoor in March because that’s when I get my bonus, and count it for the previous tax year.

[Matthew]

Also, the conversion can happen at any time and as long as the original contribution is made for the year 2024 that’s all that matters.

[Lena]

Can someone help me out with understanding Roth IRA? So, we files taxes jointly with my husband, as far as I understand,if your income jointly more than 240k, you cannot open Roth IRA? So, what do you do in this case investment wise?

Thanks!!!!

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