Webb24 sep. 2014 · After years of fighting the strategy and claiming that the pro-rata rule should still apply to such conversions, the IRS has issued IRS Notice 2014-54, reversing its prior position and acquiescing to taxpayers who wish to roll over their 401 (k) funds and proactively allocate their pre-tax amounts to the traditional IRA and the after-tax ... Webb29 jan. 2024 · Since the pro-rata rule might complicate in-service withdrawals, it might be best to consult with a financial advisor or tax professional rather than attempting the …
Mega Backdoor Roth: How Does It Work? Rhame & Gorrell Wealth …
Webb4 sep. 2024 · The contribution limit for a mega backdoor Roth is $40,500 of after-tax dollars in 2024. That’s on top of the pre-tax $20,500 401(k) contribution limit, which stays in your 401(k) account and... Webb3 apr. 2024 · Since the pro-rata rule might complicate in-service withdrawals, it might be best to consult with a financial advisor or tax professional rather than attempting the … dereham table tennis league
401(k) Rollovers, Backdoor Roth Conversions, and the Pro-Rata Rule
Webb16 feb. 2024 · The purpose of this rule is to prevent people from gaming the system by using nondeductible IRAs to move money into a Roth when they "should" first convert the … WebbThe pro-rata rule states that when a Traditional IRA or 401K contains both non-deductible after-tax funds and deductible pre-tax funds, each dollar withdrawn or converted from the IRA or 401K will contain a percentage of tax-free and taxable funds relative to the proportion those funds make up the account. Webb22 juli 2024 · The pro-rata rule states that when a Traditional IRA or 401K contains both non-deductible after-tax funds and deductible pre-tax funds, each dollar withdrawn or converted from the IRA or 401K will contain a percentage of tax-free and taxable funds … dereham swimming pool telephone number