Backdoor Roth IRA Conversion
I will turn 64 in 2018. I would like to begin contributing to a Backdoor Roth IRA. I have 2 SEP IRA annuities that I have not contributed into for many years (because I am no longer self employed). One is worth $45,000 and the other is $8,500 (I maintain this for the death benefit of $21,000). I contributed to a non deductible IRA valued at
$7, 600 (basis $6,500). I would like to do a Backdoor Roth with this account. I have a traditional IRA worth $48,000 which I will Rollover into my employers 403b. Do I need to prorate the value of the 2 annuity accounts when figuring the Roth conversion? I do not think these accounts are able to be rolled over into any other account.
Permalink Submitted by Alan - IRA critic on Sun, 2018-01-14 20:46
Your conversion will be mostly taxable unless you roll the entire pre tax IRA balance including the SEP IRAs into the 403b. The 403b will probably not accept the annuity, but you should ask the plan administrator. Otherwise, you would have to surrender the annuity and roll over the cash.