直接从traditional IRA中取钱(distribution)遵循pro-rata rule,参考前文例子。 Rollover distribution同样是distribution,也遵循pro-rata rule,即pre-tax与after-tax的部分会按其在所有traditional IRA年终金额中的比例分配给rollover的金额。例如Bob于2019年在traditional IRA #1中存入的6k deductible contribution,20...
为应对traditional IRA的pro-rata rule,在年底清空traditional IRA为佳,所以mega backdoor优先rollover至pre-tax 401(k),这样一来不影响backdoor。 Mega Backdoor:Roth 401(k) variant Mega backdoor还有一种借助Roth 401(k)的变种, 第一步与前者相同,第二步的目的地变成了Roth 401(k),这是一种in-plan Roth...
I have a question. I currently have a traditional IRA that has an initial deductible contribution I made 20 years ago and two 401k rollovers in it. I’m planning on rolling this into my company 401k by the end of 2024. I plan on opening a different traditional IRA to contribute my 202...
The article offers advice on how to convert a new non-deductible individual retirement account (IRA) to a Roth IRA at little or no tax cost even if an individual has an existing pre-tax IRA. Cosidering the pro-rata rule, it suggests rolling a pre-tax IRA dollars into a 401(k) and...
BDA — Beneficiary Distribution Account, commonly known as an inherited IRA — isn’t included because it isn’t yours, unless you inherited the account from your spouse and you make it yours. SeeInherited IRA and Roth Conversion Pro-Rata Rule. ...
所以在例2里面,对IRS来说,2017年,你Traditional IRA 里一共有$25k ,其中$20k after-tax and $5k pre-tax。在2017年,你从TraditionalIRA 里转进Roth IRA里$20k。这$20k要按照pro-rata rule 来计算,$20k * ($5k /$25k) = $4k 算为pre-tax ,并且需要交税。
Rolling the Mega Backdoor Roth funds into an existing Roth IRA account where the five-year rule has already been satisfied can help simplify and accelerate access to penalty-free withdrawals. Now let's look at an example. Example of a Penalty-Free Withdrawal from a Mega Backdoor Roth IRA ...
1) No, you don’t need to consider the pro-rata rule that factors in your pre-tax IRA funds into the calculation. 2) The pro-rata rule for Roth conversions is separate between 401k and IRAs, and it’s separate within the 401k when you only convert non-Roth after-tax contributions and...
An inherited IRA doesn’t count if you keep it separate as an inherited IRA (seeInherited IRA and Roth Conversion Pro-Rata Rule). Everything in the traditional IRA, SEP-IRA, and SIMPLE IRA, except any non-deductible contributions you made in the past, is pre-tax money. For example if ...