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jmichael-joyce
New Member

After Tax dollars in a traditional IRA

I have after tax dollars in my traditional IRA.  Rather than taking a pro-rata credit each year from my RMD, can I transfer the entire pre-tax amount to a Roth IRA without penalty?

2 Replies
ColeenD3
Expert Alumni

After Tax dollars in a traditional IRA

Yes. If you have a Non-deductible IRA in addition to your regular IRA, you should have been keeping track of those amounts on Form 8606. You can convert both a Traditional and an non-deductible IRA, but if you convert both, you will have to do some calculating to know what the ratio is regarding the taxable and nontaxable portion of the IRA. .

 

Please see this link for more information.Conversion

dmertz
Level 15

After Tax dollars in a traditional IRA

Because of the required pro-rata calculation, to convert your entire pre-tax balance in traditional IRAs to Roth you'll have to convert ALL of your traditional IRA funds to Roth.  The taxable amount of a conversion of all of your traditional IRA funds will be your entire balance in traditional IRAs minus your basis in nondeductible traditional IRA contributions.

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