I am looking for advice from the forum's fund of knowledge regarding the particulars of the following
Can you have multiple Roth IRA accounts? My reading of the IRS site indicates yes, as long as you respect the one annual contribution limit across all of them. Is that accurate, or is there any more nuance to it? I am specifically looking at doing the backdoor Roth IRA (contribute to traditional IRA, convert to roth) at one brokerage, but have a SEP-IRA at another brokerage. To do the backdoor Roth I need to empty the SEP, and am considering opening a Roth IRA at the brokerage my SEP resides to roll the SEP out to the Roth by Dec 31st (the tax implications are acceptable, and likely more favorable than they will again be for at least a decade). So, can I open Roth IRA at brokerage # 2 where SEP is, which would be a second Roth IRA for me, and rollover there, in the same year that I at brokerage # 1 have made a traditional IRA contribution, and am planning to convert that to the Roth IRA I have there?
For a rollover from a qualified plan (pre-tax) to a Roth IRA, a 1099-R will be generated with a "G" code on line 7 (I believe), indicating this is a taxable event. If I lived in a high income tax state for part of the year, and moved to a more favorable income tax state for the latter part of the year, which state counts the rollover as taxable income? My understanding is if the date you become a permanent resident of the new state is after July 1, the old state collects the income tax, and if it is before that date, the new state collects the income tax. Or are they both going to try to get their fingers in the pie?
Thanks, Merry Christmas/Happy Holidays!
Can you have multiple Roth IRA accounts? My reading of the IRS site indicates yes, as long as you respect the one annual contribution limit across all of them. Is that accurate, or is there any more nuance to it? I am specifically looking at doing the backdoor Roth IRA (contribute to traditional IRA, convert to roth) at one brokerage, but have a SEP-IRA at another brokerage. To do the backdoor Roth I need to empty the SEP, and am considering opening a Roth IRA at the brokerage my SEP resides to roll the SEP out to the Roth by Dec 31st (the tax implications are acceptable, and likely more favorable than they will again be for at least a decade). So, can I open Roth IRA at brokerage # 2 where SEP is, which would be a second Roth IRA for me, and rollover there, in the same year that I at brokerage # 1 have made a traditional IRA contribution, and am planning to convert that to the Roth IRA I have there?
For a rollover from a qualified plan (pre-tax) to a Roth IRA, a 1099-R will be generated with a "G" code on line 7 (I believe), indicating this is a taxable event. If I lived in a high income tax state for part of the year, and moved to a more favorable income tax state for the latter part of the year, which state counts the rollover as taxable income? My understanding is if the date you become a permanent resident of the new state is after July 1, the old state collects the income tax, and if it is before that date, the new state collects the income tax. Or are they both going to try to get their fingers in the pie?
Thanks, Merry Christmas/Happy Holidays!
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