为什么不建议backdoor Roth:Backdoor Roth是一种绕过Roth IRA收入限制的方法。Traditional IRA在做Roth rollover时有pro rata rule,为了从Roth IRA中取出时避开复杂的五年规则,最简单的方式是在年底前清空traditional IRA。 Tony的麻烦在于,在pro rata rule的计算中,(traditional) SIMPLE IRA会被当做一种traditional IRA。
403(b) or similar accounts. If you do hold tax-deferred IRA dollars on 12/31 of the calendar year in which you made the Roth conversion, you’ll be subject to taxes when making your conversion per thepro-rata rule.
(If your traditional IRA includes both pre- and after-tax contributions, the converted amount will be taxable in proportion to the pretax value of the account, known as the pro rata rule.2) "But before doing a Roth conversion, remember that once done, it can't be undone," said ...
2018年之前,有一種叫horse race的策略可以給Roth conversion省稅。方法是對Roth conversion在事後做recharacterization。這種方法充分利用了IRA aggregation rule不適用,以及recharacterization擁有的22個月的「後悔」期限設計穩賺的稅務套利。 2017年的Tax Cuts and Jobs Act廢除了這種recharacterization,故目前該策略已經無法被...
You should consider the potential impact of the pro-rata rule well before you intend to retire or begin taking any taxable IRA distributions — or undertake a Roth conversion — as there may be worthwhile opportunities to help blunt its impact. ...
You'll also need to weigh combined balances across IRA accounts, because of the so-called "pro-rata rule," which factors in your total pre-tax and after-tax funds to calculate your bill. "It's one of those things that you can't look at in a vacuum," Collado added. ...
注意Pro-rata rule. 简单说来,请确保在做backdoor Roth IRA这件事情之前, SEP IRA, SIMPLE IRA, Traditional IRA里面都没有钱的。也就是说Form 8606里面的line 6必须是0. 否则呢,放进去的6000块只有一部分可以转入Roth IRA了。如果有具体情况需要具体分析,请联系我们。
Roth Conversion and the Pro-Rata Rule Aug 29th, 2022 byjblankenship. No comments yet I received the following question from a reader. It’s a unique situation that you may find interesting, so I thought I’d share the interaction with you: Here’s my situation, this year I started with...
then most of the funds and investments that you convert to a Roth IRA likely will count as taxable income at the time of the conversion. That could kick you into a higher tax bracket that year; however, you may not have to pay tax on all the money; apro-ratarule applies to prevent...
1.11 “Roth Conversion IRA" shall mean a Roth IRA established for the purpose of holding assets transferred from a Traditional or SIMPLE IRA as a rollover or conversion described in Code Section 408A(d)(3). 1.12 “Roth IRA” shall mean an IRA described in Code Section 408A and shall incl...