[Swathi]

Hello, this is probably a basic question. This year for the first time I tried to do the back door Roth IRA conversion in Fidelity. I followed the steps in Whitecoat investor.

I deposited money in Traditional IRA account and after a day or two I rolled over the full amount to Roth IRA. Both accounts in Fidelity.

I did not have any issues, now when I logged into my account I see my traditional IRA has a balance of $0.22 (Dividend received fidelity government money market SPAXX).

The steps clearly say that the traditional IRA balance should be $0.

It was $0 after the roll over, I don’t understand why I have this balance now. I am worried about tax, I hope this does not create an issue.

What do I do in this situation? Also, can someone explain how I got that $0.22 when balance was $0?

[Beth]

I was told in one case to leave some Pennie’s in traditional IRA otherwise you have to open new account each year because bank will close it and 22 cents rounds down to 0 anyway

[Christophe]

You’re fine. You can roll it over to the Roth now, or wait till next year.

You earned interest while you waited a day or two to do the rollover.

[Sean]

Just convert the 22 cents as well. It’s not a big deal.

[Rick]

Dividend was received after your rollover.
No, it’s not a big deal. Roll it over next year when you do the same effort.

You can determine when your trad Ira spaxx pays its dividend and do the rollover on the day the dividend posts.

If this bothers you enough to do that.

[Richard]

I don’t have a real answer, but for tax purposes that rounds to $0

[Rebecca]

If you haven’t already filed taxes/filled out form 8606-I would roll it over now.

If you have you can do it next year; it will add a slight bit of extra annoyance to filling out form 8606 next year.

[Author]

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