When converting from a Rollover IRA to a Roth IRA, is the money from the 401k rollover non deductable?
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Filed under: Retirement Planning
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What you need to figure out is whether any of the original contributions to the 401k were after tax dollars. If they were, they would not be taxable on the Roth conversion. Your 401k statement will usually seperate pre and after tax contributions. If all of the contributions to the original 401k were pretax dollars than the total amount of the conversion is taxable in the year of the conversion.