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If I contribute after tax money to a trad IRA and then transfer it to a Roth IRA what’s the tax implications? Assume I have gains in my trad Ira
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Anonymous 6w

First, even though you missed the tax deduction on the front end, you still should be able to get your IRA contribution to reduce your overall taxable income at tax time. So in the long run, using after tax money shouldn’t hurt you i as you’ll be able to correct this at tax time However, whatever amount of money you transfer from the IRA to the Roth you will have to pay taxes on it.

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Anonymous 6w

So the net effect of your two step process is the same as if you had just put the after tax money into the Roth

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Anonymous 6w

Your financial institution will issue you form 5498 breaking this down. It depends on a few things. Pick either Roth or trad going forward. The pro rata rule is a pain

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