8 Comments

1. 

   Hana Bunny on October 17, 2022 at 1:14 pm

   Very good information and demonstration on the pro rata calculation.

2. 

   K K on October 17, 2022 at 1:14 pm

   Does the pro-rata rule apply to mega backdoor Roth conversion also? if yes, is there any method you could recommend to the high incomers who want to contribute to Roth IRA but already have a Rollover IRA without invoking pro-rata rule .

3. 

   Susan Behme on October 17, 2022 at 1:14 pm

   The article is great! Thanks for mentioning it.
   The rollover of existing IRA balances into a 401k is the best trick on the planet to eliminate the pro rata rule. I am in awe to learn this is allowed. THANK YOU.

4. 

   Straitjacket Studios on October 17, 2022 at 1:14 pm

   Why would someone open a POST TAX account as a Traditional IRA vs just opening a ROTH IRA (which is also post tax)? Would opening a $6k ROTH IRA have reduced this complexity?

5. 

   John Smith on October 17, 2022 at 1:14 pm

   Thank you so much for your clear explanation! I wonder if rollover IRA and 401K are considered traditional IRA applied by perrotta rule?

6. 

   Mims on October 17, 2022 at 1:14 pm

   Thanks for the live spreadsheet look. Very helpful. Best explanation I’ve seen on the pro rata rule. I have a question. Is my rollover ira considered a traditional ira and needs to be included in the pro rata calculation?

7. 

   Journey to Retirement on October 17, 2022 at 1:14 pm

   does the pro-rata rule apply year end only. If say I have tIRA now with $10k, I contribute $6K post tax in tIRA (seperate tIRA) than convert that entire account to a Roth IRA. Before december 2021, I plan to roll whatever tIRA I have to a employer 401k. Will it apply?

8. 

   Krish Ravindran on October 17, 2022 at 1:14 pm

   what happens, in your example, if all of the amount (both pre-tax and after-tax) is converted to ROTH IRA. What is the taxable portion?