Pre-87 basis and Post 86 basis
I have a client that recently retired. He is going to be 70 in May. His after tax basis is (Pre 87 basis $9,358 and Post 86 $146,086). Can I put both amounts into a Roth?
I have a client that recently retired. He is going to be 70 in May. His after tax basis is (Pre 87 basis $9,358 and Post 86 $146,086). Can I put both amounts into a Roth?
Permalink Submitted by Alan - IRA critic on Fri, 2016-02-19 01:18
This will be a plan RMD year for this client as he will reach 70.5. The RMD must be distributed before any direct rollovers are done. But the direct rollovers can be split between the pre tax funds rolled to a TIRA and the after tax amounts to a Roth IRA. As for the RMD, client may be able to specify the pre 87 basis for the RMD, but if not the RMD would probably be pro rated between pre tax and after tax amounts.