How to Accomplish a Back Door Roth IRA at Betterment

 

Purpose: You likely make too much money as an individual or couple to make a regular old Roth IRA contribution so you’re “going in the back door” aka a Roth conversion.

Steps

1.       Link your checking or savings account to Betterment and make a one-time cash transfer (the 2019 and 2020 limit is $6,000 but make sure you haven’t made any other Traditional or Roth contributions throughout the year) to your Traditional IRA. Emphasis on TRADITIONAL.

2.      Wait 2-3 days for the funds to show up. Then, wait at LEAST one month before doing the conversion.

3.       Navigate to Settings > Accounts > Traditional IRA and select “convert IRA to Roth” from the drop-down. That’s it!

 
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