2021 Reverse Rollover before 2020 IRA Contribution
I have a client who will be emptying out his IRA through a reverse rollover in February of 2021. Can he subsequently soon make a nondeductible contribution to his empty IRA and have it count toward 2020 and without adversely affecting the reverse rollover? That way he can contribute $14,000 in calendar year 2021 and then rollover to a Roth IRA.
Permalink Submitted by Alan - IRA critic on Sun, 2021-01-31 15:54
Yes, he can do that as soon as the qualified plan accepts the IRA rollover. Doing it before that would make the conversion mostly taxable if for whatever reason the qualified plan declined to accept the IRA rollover.
Permalink Submitted by Barry Dreayer on Sun, 2021-01-31 19:39
…that subsequent to the 2021 reverse rollover, an IRA contribution for 2020 might cause a problem. i assume your answer takes that into consideration. Thanks, again