Pro Rata nd ROTH funds
I have money in a traditional “rollover” IRA from a 457 plan. If I open another IRA and place post tax money into it is there a way to show the IRS I have not commingled money and thus avoid the Pro-Rata rule?
I have money in a traditional “rollover” IRA from a 457 plan. If I open another IRA and place post tax money into it is there a way to show the IRS I have not commingled money and thus avoid the Pro-Rata rule?
Permalink Submitted by Alan - IRA critic on Mon, 2024-09-02 11:53
Separate accounts do not work to avoid pro rating because Form 8606 (line 6) requires you to enter the total of all your owned non Roth IRA accounts. In other words, all such accounts are treated as a single combined account.