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Personal Finance (Not Investing) • IRA Pro Rata Calculation Question

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The post-tax amount (basis) stays the same. So $30k is post-tax. Everything else ($125k - $30k = $95k) is pre-tax. So distributions and conversions are pro-rata on that ratio. I believe this is what your #1 turns out to be, but the way you describe it doesn't seem right. I am not sure what the "difficulty" is -- the only thing you need to keep track of is the post-tax amount (basically, the sum of all non-deducted contributions, unless you have had distributions before). You must file Form 8606 Part I for the year you make a post-tax contribution, and it calculates the basis and pro-rata rule, if necessary.

Statistics: Posted by newacct — Tue May 07, 2024 9:40 pm — Replies 1 — Views 37



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