Roth Conversion with non-deductible contributions
If a client does a partial conversion of an IRA that contains non-deductible contributions, do the pro rata rules apply in the same manner as a back door Roth IRA contribution? Client has an IRA and SEP. I’m assuming the CPA will account for it on the form 8606.
Permalink Submitted by Alan - IRA critic on Fri, 2024-11-22 09:48
Yes, the total value of all non Roth IRAs (except inherited IRAs) at year end must be entered on line 6 of Form 8606 and will result in the pro rating between IRA basis and total values in determining the taxable portion of the conversion.