Roth IRA Conversion Pro Rata
A client holds many IRA accounts but only wants to convert one to a Roth (they meet the income limit). I was told there is a pro rata requirement for Roth conversions. True?
Thank you!
A client holds many IRA accounts but only wants to convert one to a Roth (they meet the income limit). I was told there is a pro rata requirement for Roth conversions. True?
Thank you!
Permalink Submitted by mk foss on Wed, 2009-04-01 21:16
Yes, the same pro rata rule that applies to withdrawals from an IRA applies to Roth conversions. So it doesn’t matter which IRA is converted, the tax is the same for the same dollar amount. Form 8606 gives the calculation.