Lstansbury
Recycles dryer sheets
Thank you to Rayvt for posting insights about proration rules when withdrawing aftertax contributions from a traditional IRA. It was a 2017 post, but seems very relevant still today for many and I definitely have a question, so figured, why not open a new thread
Background: A slightly sleezy salesman at my Uni convinced me to put my Roth contribution into TIAA Cref. Reason was I could get a guaranteed 3% return. ( My university is making the guarantee.) Cool for the stable portion of my portfolio.
BUT....although it is labeled a "roth" contriubtion on my statement, the funds are being held jointly in an older Traditional IRA I just so happened to already have open. So the entire account's name is TIAA Traditional IRA.
When I questioned the salesman, he said "oh, I checked and I was told they just have to mix the funds like that."
Now I'm reading about the proration on withdrawals from Rayvt? Here's a link to an eye opening situation
https://www08.wellsfargomedia.com/a...rement/taxes-and-retirement/pro-rata-rule.pdf
So my questions is -- Does anyone else have experience with this? I.e., just because my after Tax roth contribution was lumped into a Traditional Pre-Tax IRA account, do you think that might be considered subject to the prorata or "cream in your coffee" rule?
Thanks for any additional insights. I'm kinda' getting ill thinking about how I have been bilked by this guy.
Background: A slightly sleezy salesman at my Uni convinced me to put my Roth contribution into TIAA Cref. Reason was I could get a guaranteed 3% return. ( My university is making the guarantee.) Cool for the stable portion of my portfolio.
BUT....although it is labeled a "roth" contriubtion on my statement, the funds are being held jointly in an older Traditional IRA I just so happened to already have open. So the entire account's name is TIAA Traditional IRA.
When I questioned the salesman, he said "oh, I checked and I was told they just have to mix the funds like that."
Now I'm reading about the proration on withdrawals from Rayvt? Here's a link to an eye opening situation
https://www08.wellsfargomedia.com/a...rement/taxes-and-retirement/pro-rata-rule.pdf
So my questions is -- Does anyone else have experience with this? I.e., just because my after Tax roth contribution was lumped into a Traditional Pre-Tax IRA account, do you think that might be considered subject to the prorata or "cream in your coffee" rule?
Thanks for any additional insights. I'm kinda' getting ill thinking about how I have been bilked by this guy.