Hi,
I have 2 questions about Roth IRAs.
1) I am converting a previously rolled over deductible Traditional IRA to a Roth IRA. I understand Roth IRA has a 5 year aging rule before earnings can be withdrawn. I have a separate Roth IRA that has been open for more than 5 years. Does the 5 year aging rule apply to this specific converted Roth IRA by itself or are all the Roth IRA accounts I have considered together? If considered together, then I think the 5 year aging rule would not apply to me then.
2) If I convert this traditional IRA to Roth IRA before the end of 2024, can I contribute to a non-deductible Traditional IRA for the 2024 tax year and convert it a Roth IRA for the 2024 year sometime before April 2025? I am hoping this sequence of steps will avoid the pro-rata rule of Roth Conversion.
Thank you in advance!
I have 2 questions about Roth IRAs.
1) I am converting a previously rolled over deductible Traditional IRA to a Roth IRA. I understand Roth IRA has a 5 year aging rule before earnings can be withdrawn. I have a separate Roth IRA that has been open for more than 5 years. Does the 5 year aging rule apply to this specific converted Roth IRA by itself or are all the Roth IRA accounts I have considered together? If considered together, then I think the 5 year aging rule would not apply to me then.
2) If I convert this traditional IRA to Roth IRA before the end of 2024, can I contribute to a non-deductible Traditional IRA for the 2024 tax year and convert it a Roth IRA for the 2024 year sometime before April 2025? I am hoping this sequence of steps will avoid the pro-rata rule of Roth Conversion.
Thank you in advance!
Statistics: Posted by postaldaytrader — Fri Dec 20, 2024 11:21 am — Replies 1 — Views 50