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。 上图是Form 8606 Part I的计算过程。可以看到,在Line 3计算traditional ...
(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 ...
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. The five-y...
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.
1 See IRS publication 590-B for details about the Roth IRA 5-year rule for contributions and the Roth conversion 5-year rule. See also IRC §408A(d)(2), §72(t), Treas. Reg. §1.408A-6.Need a retirement income strategy? See how Schwab can help More from Charles Schwab IRA ...
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...
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...
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...
Convert assets to a Roth IRA. Follow the instructions from the firm where you hold your IRA assets to complete the backdoor Roth IRA conversion for the portion of your traditional IRA you wish to convert. Remember the pro rata rule. Don’t forget to apply the pro rata rule if you have...