@B-GBPEC wrote:
Thank you @Opus 17 in my case its post tax non deductable traditional IRA. So based this there should not be any problem with investing into traditional IRA even with rollover IRA account. The only thing is, when I withdraw the money it will calculate the taxes based on Pro rata rule as this will have post tax and pre tax. As long as I file 8606 every year it should not cause any issue. Right?
Sorry,, that doesn't make sense.
If you had after-tax dollars in a workplace plan from a previous employer, it is required that money be rolled over into a Roth IRA, while any pre-tax funds are placed in a traditional IRA. (When you rollover a workplace plan into an IRA, the plan must split the pre- and post-tax amounts. This is unlike the pro-rata rule for an IRA to IRA rollover or conversion.)
So I don't see how a workplace rollover can result in a traditional IRA with an after-tax basis.
I think we need more facts, and I will also page the best expert on the board to review @dmertz
