Transfer IRA to 401k, then make N/D contribution with subsequent back door Roth conversion
During the year, I moved the entire balance of $50,000 in my pretax rollover IRA to my company’s 401k plan. I retired the same year and contributed $5,000 n/d to the same IRA. Two weeks later I converted the $5,000 traditional IRA into a Roth IRA. I continue to have the 401k with my former employer.
Question: Does the $50,000 IRA count in the pro-rata rule calculation in the year of the converison? Do I have to wait until next year to do the conversion?
Thank You!
Permalink Submitted by Alan - IRA critic on Fri, 2019-10-04 20:08
The 50,000 will not be in your IRA at year end, and therefore will not be included on Form 8606, which calculates the taxable portion of your conversion. Just do not roll the 401k back into your IRA until next year at the earliest.