DanaB27
Expert Alumni

Retirement tax questions

1) Yes, you can move the pre-tax funds  to the 401(k) if your plan allows it. A rollover isn't a new contribution, therefore a rollover doesn't affect your contribution limits.

 

2) Please note, in the IRA's eyes all Traditional/SEP/SIMPLE IRAs are one account. Therefore, your rollover IRA would count too and you would have to include the value of this rollover account when TurboTax asks about the value of all of your Traditional/SEP/SIMPLE IRAs on December 31, 2025. If you want to avoid the pro-rata issue you would have to do the reverse rollover for this account as well.

 

3) Yes, the amount taxable with this conversion will be taxed at your regular income tax rate. Yes, you can leave the converted fund in the Roth IRA. There is no limit on the amount you can convert. You do not have an excess contribution.

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