Pro-Rata calculation
Pro-Rata rule clarification. I have a client who is the bene of his fathers IRA. He has opened an after tax IRA and wants to convert it. Do we have to consider the bene IRA as part of the calculation?
Pro-Rata rule clarification. I have a client who is the bene of his fathers IRA. He has opened an after tax IRA and wants to convert it. Do we have to consider the bene IRA as part of the calculation?
Permalink Submitted by Alan Spross on Tue, 2010-03-09 19:35
No. Any basis or fair market value in a beneficiary IRA must be kept totally separate from those amounts in owned IRAs. Separate 8606 forms would apply to any basis in inherited TIRAs from each decedent vrs owned IRA accounts.