@DanaB27
She will actually be quitting her job soon to be home full time. She does have a 401k with them in additional to the traditional IRA. We converted everything she contributed nondeductible to the traditional IRA but it has obviously created a basis. After she leaves her job would it make sense to roll her 401k into the current traditional IRA she has? Or still do a reverse rollover even though she’s won’t be working anymore, convert the basis, and roll it back into a traditional IRA? It doesn’t make sense to keep her 401k if she is not contributed to it anymore, what is the best option to do with her 401k?
“For your wife, she will have with each distribution or conversion a taxable and nontaxable part until the basis is used up because of the pro-rata rule. “
- So basically this means she has to convert the whole amount in her traditional to do backdoor Roth’s correct? And she will pay pro-rata rules until it is empty?
Sorry @DanaB27 , just curious if my wife’s 2021 and 2022 8606 looked ok?
thank you!
