IRA conversion to Roth IRA pro rata rule
Looking for clarification if a SIMPLE IRA must be used regarding the pro rata rule when converting a traditional IRA to a Roth IRA.
I am attempting to assist a client in making a nondeductible IRA contribution and converting it to a Roth IRA. he holds no other traditional IRAs. the bulk of his assets are in the SIMPLE IRA.
Permalink Submitted by Alan - IRA critic on Thu, 2018-04-12 15:27
Yes, all SIMPLE IRA, SEP IRA, and traditional IRA year end values go on line 6 of Form 8606 and are used to calculate the taxable portion of distributions or conversions from any IRAs of these types. Therefore, the SIMPLE IRA will cause the conversion to be mostly taxable.