He will have to pay the tax this year on the pro-rated conversion which, given the potential size of a 401(k) vs a single year of non-deductible contributions could be 99%, and that could feasibly result in thousands of dollars of excess taxes paid decades prior to when they would otherwise be due. Hardly a "so what?" issue. Not to mention the need to track the non-deductible basis for the rest of his life plus ten years.I would roll the 401k into a traditional IRA and be done with it. If you do a Roth conversion in the future, you pay the tax. So what?
Statistics: Posted by toddthebod — Sun Jul 14, 2024 8:48 am — Replies 5 — Views 222