IRA conversion to Roth in same year as pension roll over to traditional IRA
Hello. I have a client who currently has an IRA with after-tax contributions. He wants to convert the IRA to Roth in 2020. He also wants to take a pension lump sum and roll over to IRA in 2020. If he completes the conversion a couple of months before the taking the lump sum will that be ok, or will the pension roll over be aggregated as an IRA because it happened in the same year?
Thanks so much!
Permalink Submitted by Alan - IRA critic on Tue, 2019-08-13 15:54
The latter. I guess the current IRA still has considerable pre tax balances, otherwise the simple solution would be to convert it this year.