I have a Traditional IRA (IRA-1) that I want to rollover, either into another Traditional IRA (IRA-2) or into my 401-K account. The wrinkle is that all of the contributions to IRA-1 were non-deductible, so all of the basis is after-tax and all of the earnings are pre-tax. From reading IRS Pubs 590-A, 590-B, and Notice 2014-54, my understanding is that the earnings could be directed to a Traditional IRA and the basis directed to a Roth IRA. I've read some online discussions that the basis could even be put into a regular savings account, i.e., as a return of the original (after-tax) investment. I'm interested in this last point because it would help with college funding.
Any thoughts on doing this?
Any thoughts on doing this?
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