Converting an IRA to a Roth after age 60 is possible, but it must be done properly in order to avoid tax penalties. The first step is to consult with a tax professional or financial advisor who can help you determine if this conversion makes sense for your specific situation. ...
beginning of the calendar year that you did the conversion.9So, for example, if you converted traditional IRA funds to a Roth IRA in November 2024, your five-year clock would start ticking on Jan. 1, 2024, and you'd be able to withdraw money without penalty anytime after Jan. 1, ...
对于第二、第三项,以traditional IRA-> Roth IRA为例,non-deductible的部分在rollover当年不产生收入税,因此被归为nontaxable conversion;pre-tax部分会产生收入税,因此被归为taxable conversion。Earning的数值是Roth IRA内的资金总和减去前三部分,它可以是负数(亏损)。税法(IRC Sec. 408A (4)(B))规定了这四...
Conversions Taxable取出时,不交税,交罚金取决于这笔Conversion 是不是已经超过五年,若超过五年,则不交罚金,否则要交。 2. Conversions Non-taxable Traditional IRA/ After-Tax 401k 中存入的本金转入Roth IRA 的部分,取出时不交罚金不交税!! 3. Earnings 所有收益,取出交罚金,也交税 : ( 从中取钱必须是0,1,...
三、Roth Conversion Roth虽好,但是好多人不能存。为啥?不Qualify呗。怎么办呢?好说!其中一个是存After-Tax的IRA,然后每年Convert to Roth,或者把以前的IRA每年Convert成Roth。那样你就有更多的Roth啦。但是Convert的Roth 有五年的限制,不像普通Contribute的Roth,只要账户满了5年,所有的本金都可以随时取用,而Convert...
to convert just the after-tax portion to avoid taxes. The IRS' pro rata rules will treat the conversion as a mix of pre- and after-tax assets, according to their proportion in your account. So, if 5% of your account is in after-tax dollars, 5% of your conversion will be tax-free....
You have the option of converting an existing401(k)or a traditional IRA to a Roth IRA, using the same backdoor strategy. The advantage of converting is that any earnings after the Roth conversion will no longer be taxable when you withdraw money during retirement. The disadvantage is that yo...
Question: In 2022 I made a non-deductible traditional IRA contribution for 2022 and Roth converted few days later. The trad. IRA balance went to $0 after the conversion but at the end of the month my bank posted ~$1 interest into the trad. IRA account. I kept this balance into 2023 ...
To get back the tax you paid on the conversion you would then need to file an amended tax return (using Form 1040-X) by the due date for amended returns. (Usually you have three years after the date you filed the original return, but you shouldn’t wait that long to seek a refund...
我们可以控制distribution等于0(即不从traditional IRA直接取钱),让Roth conversion等于after-tax basis(rollover全部的量),所以条件变成了 traditional IRA year end value = 0 这即是坊间流传的年底将traditional IRA清空以便做backdoor的诀窍。 假如公司的401(k) plan支持,可以在backdoor的两步做完后,将剩...