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Hi-
I am very confused. I currently have a regular IRA account. This account has had the following contributions made to it
over the years:
tax deductible
non-deduuctible (only 1k)
rolled over a 401k account into it

Is this going to cause major problems with calculating the taxes owed when I start to pull money out many years from
now? I am about to contribute non-deductible contributions for 2000 and 2001. Should I not deposit these contributions into
this account but instead open another traditional IRA and keep non-deductible contributions separate from deductible
ones?

If I have another 401k to roll over in the future should I not roll it into my current IRA?

Will this merging of contributions cause headaches if I decide to convert to a Rooth IRA down the line?

Thanks for your help!


No problem. All the money is taxed the same when you take it out except for that $1000 non deductibel. You shoud now be filing form 8606 with your 1040 tax return.

I would file this year and forget the past years. If you want to forget the whole thing you would pay say 28% tax on 1,000 over the life of your retirement.

If you fill out the forms each year the 1000 will not be taxed because it was taxed before.
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