AFTER TAX IRA PORTIONS
I have a prospect who has aprox 385k in his ira. Of which 59k is after tax money. How to I set up the new Ira so not to cause a problem with his after tax contribution?
I have a prospect who has aprox 385k in his ira. Of which 59k is after tax money. How to I set up the new Ira so not to cause a problem with his after tax contribution?
Permalink Submitted by Alan Spross on Fri, 2008-02-15 02:40
There is no risk of causing this problem because all of his IRA accounts are considered to be a single account for tax purposes. He will still have his 59k basis in his IRA if he has properly filed Form 8606 to report them, regardless of how many TIRA accounts he maintains. It does not matter if the new account is to be for new contributions or rollovers from one of the prior accounts.