m***s
发帖数: 605 | 1 some questions :)
1. If it is free to contribute to non-deductible IRA and then convert
to Roth IRA, why not let us directly contribute to Roth IRA? I may have
contributed to Roth IRA at the beginning of the year, and find my
income exceeds the limit, then recharacterize to non-deductible IRA and
then convert back to Roth, is this supposed to be the "correct" way?
2. I know all traditional IRA's has to be summed up as the basis for
making the conversion, who will keep track of which part of my IRA
account is non-deductible and which is pre-tax? Too much work to do.
Many thanks! | t*m
发帖数: 4414 | 2 1. yes
2. irs will track it and tax you.
【在 m***s 的大作中提到】
: some questions :)
: 1. If it is free to contribute to non-deductible IRA and then convert
: to Roth IRA, why not let us directly contribute to Roth IRA? I may have
: contributed to Roth IRA at the beginning of the year, and find my
: income exceeds the limit, then recharacterize to non-deductible IRA and
: then convert back to Roth, is this supposed to be the "correct" way?
: 2. I know all traditional IRA's has to be summed up as the basis for
: making the conversion, who will keep track of which part of my IRA
: account is non-deductible and which is pre-tax? Too much work to do.
: Many thanks!
| t***s
发帖数: 4666 | 3 no. you file a form each year to keep track of the basis. otherwise
irs will treat it as before-tax.
【在 t*m 的大作中提到】
: 1. yes
: 2. irs will track it and tax you.
| t*m
发帖数: 4414 | 4 that's what I mean, irs will track it :)
(the right way, file 8606 to establish your basis)
【在 t***s 的大作中提到】
: no. you file a form each year to keep track of the basis. otherwise
: irs will treat it as before-tax.
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