Pro Rata Rule clarification

The pro rata rule applies if a person makes a non-deductable contribution to an ira and converts after tax funds with pre tax funds. However, this would not apply if a person made a deductable ira contribution to an ira with preexisting pre tax funds and converted to a roth ira, correct?



Correct. Pro rating only applies when there is basis in any of your non Roth  IRAs from non deductible contributions.

Add new comment

Log in or register to post comments