Louis2
Recycles dryer sheets
- Joined
- Jan 20, 2014
- Messages
- 58
I have a traditional IRA, rolled over from employer 401K upon my retirement four years ago. My contributions were about 90% pre-tax and 10% after-tax. I have done my homework on converting to a ROTH IRA and know the mechanics, but I am unsure on how to calculate my tax bill.
Reading up, the IRS (since 2014) would now allow me to have transferred the 90% into traditional 401K and the 10% into a ROTH, but that didn't happen in 2012 when I did the transfer.
- Logically, I feel that I should owe taxes on 90% of the conversion, but I realize that I have also not paid taxes on the GROWTH of the 10% that went in after-tax. Looking back at my 401K statements, I'm not even sure how to calculate that amount.
Am I missing something?
Reading up, the IRS (since 2014) would now allow me to have transferred the 90% into traditional 401K and the 10% into a ROTH, but that didn't happen in 2012 when I did the transfer.
- Logically, I feel that I should owe taxes on 90% of the conversion, but I realize that I have also not paid taxes on the GROWTH of the 10% that went in after-tax. Looking back at my 401K statements, I'm not even sure how to calculate that amount.
Am I missing something?