这个Pro-rata rule呢,就是为了防止大家只convert after-tax to Roth IRA然后把pre-tax 的继续留着。 根据IRS Notice 2014-54里的解释 'If a participant’s account balance in a planqualified under § 401(a) or in a § 403(b) plan includes both after-tax andpretax amounts, then, under § ...
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...
There's a pro rata rule for backdoor Roths The IRS requires rollovers from traditional IRAs to Roth IRAs to be done pro rata. Here's how it works: When determining your tax bill on a conversion from a traditional IRA to a Roth IRA, the IRS is going to look at all of your traditio...
1.) Do I have to worry about the pro rata rule? I’m thinking I will but like you said, it will be minimal. 2.) Will I need to continue transferring from my t-ira to my roth via back door every year or can I just deposit into my roth from my bank, now that my roth is ...
Do I have to convert ALL my retirement accounts to safely convert to back door Roth IRA to avoid the pro-rata rule? Do I have to convert a prevous 403b rollover IRA also? Over the past 20 years, I have accumulated multiple retiremnt accounts: 1) Current emloyer 403b, 457, Pension ...
即after-tax basis rollover至Roth IRA,而pre-tax earning rollver至401(k) plan中的另一子账户pre-tax 401(k)。仅以mega backdoor而言,目的地pre-tax 401(k)也可以换成traditional IRA。但因为高收入人士往往同时做backdoor(以traditional IRA为跳板的backdoor Roth)。为应对traditional IRA的pro-rata rule,在...
2) Regarding the pro-rata rule for Roth conversions, does the mix of pre and post tax contributions include both 401k and IRAs or is that separate? 3) If I receive a 1099R for the automatic in-plan conversion to Roth in my 401k, this represents any earnings from the time the after-...
IRS pro rata rule.The IRS pro rata rule can cause a backdoor Roth IRA to be a taxable event if you have other pre-tax IRA assets. Must wait five years to withdraw after each conversion.The five-year rule applies to each backdoor Roth IRA conversion. “If you do a backdoor Roth IRA...
即after-tax basis rollover至Roth IRA,而pre-tax earning rollver至401(k) plan中的另一子账户pre-tax 401(k)。仅以mega backdoor而言,目的地pre-tax 401(k)也可以换成traditional IRA。但因为高收入人士往往同时做backdoor(以traditional IRA为跳板的backdoor Roth)。为应对traditional IRA的...
Even given that, the backdoor Roth IRA strategy can have advantages—especially for high earners. Roth IRAs don’t have RMDs, so you can hold them forever and pass them on to your heirs. Another advantage is that a backdoor Roth contribution can mean significant tax savings over the decades...