Back door roth conversion uses pro-rata when converting to Roth.
For example, if you have $6000 after tax traditional IRA money and $12000 before tax traditional IRA, no matter how many accounts they are in, they are considered as a whole when converting to Roth.
In this example, whatever money you convert, only 1/3 of that does not need pay additional tax, the other 2/3 must pay income tax.
You need to file Form 8606 Nondeductible IRAs for the pro-rated
The only way to avoid this situation is to rollback all your other rollover IRAs (from pre-tax 401k) to your current 401k plan, leaving only nondeductible IRAs (100% nondeductible). Otherwise, you will need to do this form every year untill you empty all your traditional IRA. It's actually not that bad if you start doing this and Tax software will keep your updated ratio every year.
As long as you have both nondeductible and deductible IRAs under your name, pro-rated tax cannot be avoided unless you can rollover the deductible IRAs (assuming you keep seperate account for both) to a 401k. Form 8606 has detailed calculations to take care of book keeping every year when you update your conversion from IRA to Roth using the new non-deductible to total IRAs ratio. Even you don't want to convert now, this ratio will be used for your RMD (72 year old) any way to figure out taxible amount, so you need to keep all of the IRA record until you completely empty your IRA, regardless you convert now or take distribution or RMD from your IRAs.
我有nondeductible traditional IRA， 里面都是税后的钱， 另还有traditional IRA是从前公司rollover 过来的，里面是pre-tax 401K钱，我这种情况，还能每年往nondeductible IRA存 6000， 再backdoor到 ROTH IRA吗？转的话要付税吗？请高手指点迷津，谢谢谢谢！
https://rodgers-associates.com/blog/pro-rata-rule/
专门转这位6000$，不和以前任何其它ira掺和在一起，就行了。
Back door roth conversion uses pro-rata when converting to Roth.
For example, if you have $6000 after tax traditional IRA money and $12000 before tax traditional IRA, no matter how many accounts they are in, they are considered as a whole when converting to Roth.
In this example, whatever money you convert, only 1/3 of that does not need pay additional tax, the other 2/3 must pay income tax.
或者等某一年收入低的时候转
The only way to avoid this situation is to rollback all your other rollover IRAs (from pre-tax 401k) to your current 401k plan, leaving only nondeductible IRAs (100% nondeductible). Otherwise, you will need to do this form every year untill you empty all your traditional IRA. It's actually not that bad if you start doing this and Tax software will keep your updated ratio every year.
我又研究了一下，我原来理解错了。谢谢
可以考虑这个方案
是不是double tax, 不划算了？ 还是不存为好？ 谢谢！
我理解的是做backdoor roth，必须要通过打电话让管理公司操作。假设你是在fidelity，那应该可以让fidelity的人把你目前ira里面属于after-tax的那部分钱转到roth，然后其他要补交tax的部分转到其他可以接收pre-tax钱的退休账号。我自己目前是这么做的：某个退休账号里有after-tax的钱直接转到roth ira（必须要打电话），对tax产生影响的部分转到401k。这个上限应该不只6000？ fidelity和我说我可以在after-tax的退休账号里存到50000多，都可以转到roth ira （类似于mega backdoor）
As long as you have both nondeductible and deductible IRAs under your name, pro-rated tax cannot be avoided unless you can rollover the deductible IRAs (assuming you keep seperate account for both) to a 401k. Form 8606 has detailed calculations to take care of book keeping every year when you update your conversion from IRA to Roth using the new non-deductible to total IRAs ratio. Even you don't want to convert now, this ratio will be used for your RMD (72 year old) any way to figure out taxible amount, so you need to keep all of the IRA record until you completely empty your IRA, regardless you convert now or take distribution or RMD from your IRAs.
比如说pre tax 10万，nondeductible 5万
如果转3万，那么其中 3*10/（10+5）是要交税的。
所以back door Roth IRA比较适用没有nondeductible IRA的人。
比如说pre tax 10万，nondeductible 5万
如果转3万，那么其中 3*10/（10+5）是要交税的。
所以back door Roth IRA比较适用没有nondeductible IRA的人。
比如说pre tax 10万，nondeductible 5万
如果转3万，那么其中 3*10/（10+5）是要交税的。
所以back door Roth IRA比较适用没有nondeductible IRA的人。
加起来按deductible和non-deductible比例交税的。