The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Post Fiscal Cliff IRA Conversions Date:  1/6/2013  2:07 PM
Author:  TMFPMarti Number:  117307 of 127546

With the 2013 change permitting 401k conversions to Roth 401k does this change the pro rata calculation for IRA to Roth IRA conversions?


There seems to be some confusion about this provision. In-plan "conversions" to Roth have been allowed previously. This is just housekeeping to make them easier, thus, in theory, more attractive so that people will flock to them, thus producing the revenue necessary to "pay" for kicking the sequestration can 2 months down the road.

Nothing of note to the employee has changed in the law.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us