但是Roth IRA建立之初,除了Roth contribution有收入限制以外,Roth rollover/conversion也有收入限制。 上图是一张2000年的Form 8606 Part II,可见只有MAGI小于$100,000才可以做Roth rollover/conversion。 如果Roth conversion计入MAGI,且又受MAGI限制,则Roth conversion也需要通过解方程计算出最大值和范围。为了避免这个麻...
If you have both pre- and after-tax contributions in your account, you can't choose 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 ...
(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 ...
The trade-off is that Roth conversions trigger an upfront tax bill on contributions and earnings. The bigger your pre-tax balance, the more you'll owe for the conversion. And the latest stock volatility may be an opportunity for investors eyeing a Roth conversion, said certified financial ...
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。
A: Roth 401(k)的取钱规则依然是pro-rata rule,但在分配给in-plan Roth rollover部分时,是仿照Roth IRA的规则,先进先出,同一年taxable的部分先分配。 这个规则来自于[Notice 2010-84 A-13]的例子,我们取一个简化版本: Peter 2020年时做了一笔100k的in-plan Roth rollover,其中10k是non-taxable的。2020年年...
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...
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...
The conversion of a Traditional or SIMPLE IRA to a Roth IRA shall be treated as a distribution and a Qualified Rollover Contribution to which this Paragraph applies. SEP, SAR-SEP and SIMPLE IRAs may be rolled over or converted to a Roth IRA provided, however, that subsequent employer ...
–In January I made a $6k backdoor Roth IRA contribution & conversion. –In June 2022 I was laid off. I had a traditional 401k with this employer worth about $20k. I didn’t do proper research about the IRS’s pro-rata rule, and – here’s the error – rolled over the 401k bala...