Traditional to 401k and Roth
Could a person transfer all the deductible contributions in a traditional ira to a 401k plan, then take the remaining nondeductible contributions and convert them to a Roth IRA. If a person did this would only the nondeductible contributions be considered for the Roth conversion?
Permalink Submitted by Alan Spross on Sat, 2010-03-27 17:55
Yes, this can be done. The toughest part is the plan provisions for accepting IRA rollovers and whehter those rollovers are limited to rollover IRA accounts only or all IRAs. Once that part is done, the rest is easy. Of course, the person must have filed the 8606 forms correctly, or will have to file them retroactively for the conversion to be tax free.