Era Posted January 15, 2021 Posted January 15, 2021 I'm seeking to convert a Traditional IRA to Roth IRA (backdoor Roth). All of the contributions to the Traditional IRA were non-deductible due to income limits EXCEPT that it includes a loan offset rollover contribution (401k loan taken out, laid off, did a loan-offset rollover for the loan amount into the IRA). Is the loan offset rollover amount "deductible" or "nondeductible" for conversion purposes? Trying to calculate the pro-rata taxable amount since the account now includes investment gains that would be taxable, but don't know how to classify that loan offset contribution. Thank you for any thoughts you have.
Lou S. Posted January 15, 2021 Posted January 15, 2021 The Rollover you did of the outstanding loan balance is not part of your basis. Luke Bailey 1
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now