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Investing/Strategies / Retirement Investing
|Subject: Re: Trad IRA -- why?||Date: 1/29/2010 1:25 PM|
|Author: zol||Number: 66715 of 81985|
I was reading the 8606 the other day but got lost on the "add line x and y, enter that number here, subtract this, enter this now..." I guess I have to plug in actual numbers.
You said: If you have Traditional IRAs that have pre-tax money (contributions or gains) in them, then all conversions must be pro-rated.
I need to understand pro-rating since my spouse's IRA has pre-tax money. The intent is to convert the whole account, not just a portion. The problem, in my mind, is how do I deal with it next year? If I make the 2010 contribution now and convert before filling, do I report the value of the account (line 6) as $0 next year? Will that complicate things?
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