Roth Conversion with SIMPLE 401(k)
Hello,
If I have an old SIMPLE 401(k), is that account treated like a 401(k) plan for a Roth conversion where it is excluded from the “pro-rata rule”? I backdoor into a Roth via the nondeductible IRA contribution each year and I have no other IRA or SIMPLE IRA Accounts. This SIMPLE 401(k) plan is from an employer I just left. Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2019-01-25 16:23
It is a 401k, not an IRA. Therefore, the balance is not counted in IRA distribution pro rata rules and is not shown on line 6 of Form 8606. It does not affect your back door Roth strategy.