Conversion of Tradition to Roth IRA
I have a traditional IRA that has both deductible as well as nondeductible contributions.
How do I convert the nondeductible (basis) portion to a Roth. Goal is to move the nontaxable portion of the Traditional into my Roth IRA.
Permalink Submitted by Alan - IRA critic on Thu, 2015-02-05 18:24
Under the pro rate rules of Form 8606, you cannot convert just the IRA basis to a Roth. All your owner IRA accounts must be included in the pro rate calculation. The only way you can convert only the basis is to transfer the pre tax balance of all your non Roth IRAs to an employer plan. That leaves behind in the IRA only the basis from non deductible contributions or roll overs of after tax contributions from employer plans. The remaining basis can then be converted to a Roth IRA tax free. You can also convert the basis tax free first as long as the rollover of the pre tax balance to an employer plan is completed by the end of the current year.
Permalink Submitted by Ron Rahall on Thu, 2015-02-05 19:31
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