DanaB27
Expert Alumni

Retirement tax questions

As far as the IRS is concerned all traditional/SEP/SIMPLE IRAs are one account even if you have multiple accounts in your name. You will need to enter the value of all of your traditional/SEP/SIMPLE IRAs and the value of all of your wife's traditional/SEP/SIMPLE IRAs. 

 

Yes, it seems the pro-rata rule applies to you since you had pre-tax funds. The Backdoor Roth only works if your traditional/SEP/SIMPLE IRAs are empty.  If you plan to use this strategy in the future you might want to think about a reverse rollover where you rollover IRA money to a company plan, like a 401(k). Only pre-tax funds can be rolled from an IRA to a company plan. Therefore, you would isolate the basis and could start the Backdoor Roth procedure fresh. But it only works if your employer allows it, not all plans do.

 

@jcr7 

 

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