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Retirement tax questions
Then my original reply on 2/9/2023 applies, assuming that $8,154 is your total 2022 year-end balance in traditional IRAs, including any amounts that remain of what was rolled over from the 401(k).
Having to include $6,250 in taxable income now means $6,250 less taxable income in the future and you still have basis in nondeductible traditional IRA contributions to reduce the taxable amount of future traditional IRA distributions and Roth conversions.
If you have a 401(k) that will accept the rollover of the pre-tax portion of your traditional IRAs, you'll be able to convert the remainder, applying all of your basis to reduce the taxable amount to zero.
‎February 14, 2023
5:44 AM