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  • jfoxcpacfp
    replied


    Question:   Do I need to know what part of my traditional IRA money is principal versus gains in terms of transferring the entire traditional IRA to the 401K?   Or, do you just transfer the entire traditional IRA account and not worry about what is principal and what is gain??
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    No, the balance in the account is 100% taxable at ordinary income tax rates (meaning, there is no special capital gains treatment) so you just transfer the whole thing, assuming your current 401k accepts rollovers (not all do, so check your Summary Plan Description). I am also assuming your TIRA is all pre-tax - correct?

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  • DR R
    replied
    Can someone address this question and point me to a reference if possible:

    I have a traditional IRA and a company sponsored 401k.

    I would like to open a non deductible traditional IRA, fund it to the maximum allowed ( $6500) and then do a back door conversion of this money into a Roth IRA.

    I understand I need to transfer my traditional IRA money into my 401K in order to avoid taxes when I do the back door Roth conversion.

    Question:   Do I need to know what part of my traditional IRA money is principal versus gains in terms of transferring the entire traditional IRA to the 401K?   Or, do you just transfer the entire traditional IRA account and not worry about what is principal and what is gain??

    Leave a comment:


  • jfoxcpacfp
    replied
    Yes, that is fine. You do not have to have all of your accounts with one custodian, although it will be simpler in the long run.

    I understand that you want to help, and you're doing it with your eyes open. Maybe wait until he starts hitting on you for whole life or annuities to move your account.

    Leave a comment:


  • goatmom
    replied
    Thanks for all the help.  Can I do the backdoor roth somewhere else and leave my solo 401k at EJ? DH not open to moving stuff at this time.

    Leave a comment:


  • Peds
    replied
    1) IRAs are individual. his accounts do not affect yours. so yes, you can do a backdoor rIRA. he can as well, but as jfox stated it will cost you so dont.

    2) get away from EJ. call up vanguard/fidelity/schwab and get your stuff out of there. will save you potentially hundreds of thousands of dollars.

    Leave a comment:


  • jfoxcpacfp
    replied
    Yes, you can do a backdoor Roth for yourself. You can contribute for 2017 until 4/17/18 and then convert at any time.

    Your husband can also do one, but he will owe taxes on the conversion.

    See Explaining Backdoor Roth IRAs.

    Leave a comment:


  • goatmom
    started a topic Another Backdoor Roth Question

    Another Backdoor Roth Question

    I want to thank you all upfront for your help.  This website has helped me so much.  So here is my question:

    I wanted to do a backdoor roth this year.  I converted my sep IRA to solo 401k back in December.

    My husband still has a sep and a traditional IRA.

    Can I do the backdoor roth for myself?

    Our money is currently at EJ.  Can I open my roth at Vanguard?  Husband put everything at EJ due to his relative opening an office - trying to help him out with his business.

     

     

     
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