Jonathan Haddon

Comments:

• Yes, for this to fully work, the year-end balance in all of your traditional IRAs should be $0.00 at the end of the year in which you do the Roth conversion. That is, you move all money out of the IRA into either the employer sponsored tax-deferred plan or to the Roth before the end of the year. If you also want to roll money from the employer sponsored plan back into a traditional IRA, you need to wait until after the year in which you do the Roth conversion. But once you complete this, all future earnings on the money you converted to the Roth will be tax free, instead of taxed upon withdrawal from the traditional IRA, as they would have been if you did not do the conversion.

  Post: Convert Your Traditional IRA Non-deductible Contributions to a Roth Tax-free

  Link to comment from August 8, 2024