在不清空traditional ira, back door roth时候的报税问题,问了LLM,LLM答对了

问LLM的问题是一个假设
i have a traditional ira with 180k all pre tax dollors, i have 30% profit. now i am contribute 7200$ for after tax dollor and do a backdoor roth conversion for the 7200$, how to calculate the tax?

LLM的回答,看上去靠谱但不知道是不是对的
To calculate the tax impact of a backdoor Roth conversion when you have both pre-tax and after-tax contributions in a Traditional IRA, you need to follow these steps carefully, considering the pro-rata rule for IRA conversions. Here’s a structured approach to understanding the tax implications:

Given Information:

  1. Total Traditional IRA Balance: $180,000
  2. Pre-tax amount: $180,000 (entire balance since no after-tax contributions were mentioned prior to the $7,200 contribution)
  3. After-tax contribution: $7,200
  4. Total Traditional IRA balance after contribution: $180,000 + $7,200 = $187,200
  5. Amount to be converted to Roth IRA: $7,200 (backdoor Roth conversion)

Step-by-Step Calculation:

1. Determine the Pro-Rata Share of Pre-tax and After-tax Amounts:

Since you are performing a conversion under the pro-rata rule, the IRS considers the ratio of pre-tax to total IRA funds to determine the taxable portion of the conversion.

Pre-tax ratio=Total IRA balancePre-tax amount=187,200180,000

2. Calculate the Pre-tax Ratio:

Pre-tax ratio=187,200180,000≈0.9615

3. Determine the Taxable Portion of the Conversion:

The taxable portion of the conversion is based on the pre-tax ratio:

Taxable portion=Amount converted×Pre-tax ratio=7,200×0.9615≈6,922.80

4. Determine the Non-taxable Portion of the Conversion:

The non-taxable portion is the remainder of the converted amount:

Non-taxable portion=Amount converted−Taxable portion=7,200−6,922.80=277.20

Summary of the Conversion:

  • Taxable portion: $6,922.80
  • Non-taxable portion: $277.20

Tax Calculation:

You will need to add the taxable portion of the conversion ($6,922.80) to your gross income for the year. The tax on this amount will depend on your marginal tax bracket. For illustration, let’s assume you fall into the 22% bracket:

Tax on conversion=6,922.80×0.22≈1,523.02

还不如直接从Traditional IRA转钱去Roth省事,想转多少转多少,当作收入交税就是了

180k交税转成roth也太多了,不转的话每次backdoor都要算交多少税。

现在交税不划算啊

这样Backdoor也要交税啊,180K的IRA,基本就是Backdoor存到Roth的钱都要交税,有区别嘛?

是的,但是从chase 转回401k遇到些困难

这个计算正确么?如果正确的话感觉很不划算啊

最简单还是把triditional IRA清空,如果有401k可以转到401k去

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Traditional IRA一般转不了401K吧

正确啊,就是按比例交税,所以我说和直接做Roth Conversion没啥区别

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取决于你的plan,我的可以,上周刚转了的

我自己以前做过 merril很顺利,但是chase就不行,这个叫reverse rollover

看来楼主的Plan不太可以 :thinking:

我知道叫啥名字,但不是100%可以。
要不你转到Merrill再转401K呗?

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一般是把triditional IRA清空再convert to Roth 比较好

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这个计算没错

你这么多pretax balance的话别存backdoor了。你看看7200当中6900都是要交税的,根本没起到backdoor避税的作用

问现在的雇主401k能否reverse rollover。先把pretax money 清空再说

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计算没错
帖子标题有点问题,是不清空traditional ira,不是不清空traditional roth

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改了,我一直不懂这种情况怎么报税,现在懂了

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