Hi, by any chance, does anyone have real life experience doing Backdoor Roth contributions with Citibank?(*)
I know “sometimes” things which are supposed to be simple can get extremely complex with Citi, hence my question. If anyone has ever done a Backdoor Roth conversion with Citi and could share their experience, it would be highly appreciated! Thank you!
As I understood it, the process should be as simples as described below - Am I missing something?
1. I open a traditional IRA account (let’s say account number 001) and I open a Roth IRA account (account number 002) with Citi;
2. Within 2024, I transfer up to $7000 in non-tax-deductible funds to the traditional IRA 001 (I can keep it on cash, given that I will soon “convert” it to the Roth IRA, right)?
3. Within 2024, I transfer those $7000 from my traditional IRA 001 to my Roth IRA 002 ( <— this is the key step I am trying to understand how painful will be to complete it at Citi) and then invest that money in ETFs
4. In 2025, I repeat steps 2 & 3. And in 2026…2027…etc.
In particular, I would like to confirm that Citi will not create additional accounts during the process, I would like to confirm that once accounts 001 and 002 are created, I can just use them again next year.
Maybe it is a silly question, but a “Roth conversion” means converting balances from traditional IRA to balances in a Roth IRA, not converting the traditional IRA account per si into a Roth IRA account, right? The latter would imply that I would have to open a new IRA every year. I work in an highly regulated company, where I need to get pre-clearance to open any new trading accounts, hence it is very important for me to understand if once the 2 accounts above are created, Citi will not create new accounts - neither ask me to create new accounts - during the process or in subsequent years.
Thank you.
Notes:
(*) Not relevant for this topic, but technically speaking, I understand the traditional IRA and Roth IRA accounts will be opened not with CitiBANK but by Citibank Personal Wealth Management (CPWM) having Pershing LLC as the account custodian. CitiBANK does have tIRA & Roth IRA accounts but one cannot use those for investments in ETFs, only plain vanilla banking products such as CDs.
(**) I currently hold checking/savings account with Citibank, a 401k with my employer (in auto-pilot mode), and a taxable trading account with CPWM (where I invest in ETFs every month).
(***) For different reasons not relevant for this topic but related to the pre-clearance process mentioned above, I am not looking for tIRA and Roth IRA accounts with providers other than Citi at this point.
(****) For avoidance of doubt, my income is above the threshold for a direct Roth IRA contribution.
P.S. this is my first time posting here, but I have read all the 3 Bogleheads books and listened to all of the Boogleheads on Investing podcasts twice - thank you and you guys rock!
I know “sometimes” things which are supposed to be simple can get extremely complex with Citi, hence my question. If anyone has ever done a Backdoor Roth conversion with Citi and could share their experience, it would be highly appreciated! Thank you!
As I understood it, the process should be as simples as described below - Am I missing something?
1. I open a traditional IRA account (let’s say account number 001) and I open a Roth IRA account (account number 002) with Citi;
2. Within 2024, I transfer up to $7000 in non-tax-deductible funds to the traditional IRA 001 (I can keep it on cash, given that I will soon “convert” it to the Roth IRA, right)?
3. Within 2024, I transfer those $7000 from my traditional IRA 001 to my Roth IRA 002 ( <— this is the key step I am trying to understand how painful will be to complete it at Citi) and then invest that money in ETFs
4. In 2025, I repeat steps 2 & 3. And in 2026…2027…etc.
In particular, I would like to confirm that Citi will not create additional accounts during the process, I would like to confirm that once accounts 001 and 002 are created, I can just use them again next year.
Maybe it is a silly question, but a “Roth conversion” means converting balances from traditional IRA to balances in a Roth IRA, not converting the traditional IRA account per si into a Roth IRA account, right? The latter would imply that I would have to open a new IRA every year. I work in an highly regulated company, where I need to get pre-clearance to open any new trading accounts, hence it is very important for me to understand if once the 2 accounts above are created, Citi will not create new accounts - neither ask me to create new accounts - during the process or in subsequent years.
Thank you.
Notes:
(*) Not relevant for this topic, but technically speaking, I understand the traditional IRA and Roth IRA accounts will be opened not with CitiBANK but by Citibank Personal Wealth Management (CPWM) having Pershing LLC as the account custodian. CitiBANK does have tIRA & Roth IRA accounts but one cannot use those for investments in ETFs, only plain vanilla banking products such as CDs.
(**) I currently hold checking/savings account with Citibank, a 401k with my employer (in auto-pilot mode), and a taxable trading account with CPWM (where I invest in ETFs every month).
(***) For different reasons not relevant for this topic but related to the pre-clearance process mentioned above, I am not looking for tIRA and Roth IRA accounts with providers other than Citi at this point.
(****) For avoidance of doubt, my income is above the threshold for a direct Roth IRA contribution.
P.S. this is my first time posting here, but I have read all the 3 Bogleheads books and listened to all of the Boogleheads on Investing podcasts twice - thank you and you guys rock!
Statistics: Posted by Imstayingthecourse — Mon May 06, 2024 6:59 pm — Replies 1 — Views 80