asset transfer from an IRA to a single 401(k)
If a Traditional IRA is asset transferred to a single 401(k) prior to a conversion of another Traditional IRA to a Roth IRA, does the value in the asset transferred IRA to a single 401(k) figure in the Roth conversion pro rata tax calculation?
Permalink Submitted by Alan Spross on Fri, 2010-04-09 18:26
No. You do not show the value transferred to a qualified plan from your IRA anywhere on Form 8606 when you report the conversion. You can only transfer pre tax amounts from an IRA to a qualified plan, so by doing this your basis from non deductible contributions increases because your basis does not change, but the total value of your TIRAs at year end is reduced by the amount transferred out. That may be the reason you did the transfer, but there also could be other reasons.