Non deductible IRA conversion to Roth
We have a husband and wife that want to make non-deductible IRA contributions for 2022 and then immediately convert those $$ to a ROTH.
He has 1 ROTH IRA with a $15k balance.
She has a ROTH IRA with a $56k balance and a 401(k) that we are just getting ready to roll over. Her 401k has about 82k in IRA balance and about $58k in ROTH.
Are we ok to convert these 2022 non-deductible IRAs to ROTHs, making sure we do not roll the 401k to IRA until after this conversion? no other traditional IRAs, simples or sep’s.
Permalink Submitted by David Mertz on Thu, 2023-02-23 16:03
To accomplish the desired result, the traditional 401(k) *cannot* be rolled over to a traditional IRA before 2024. Rolling it over *anytime* in 2023 would cause it to appear in the IRA 2023 year-end balance used in the pro rata calculation of the taxable amount of her 2023 Roth conversion.