Rolling TIRA accounts to 401K, small change remaining

[fh2000]

We have total 4 TIRA accounts that we are in the processing of rolling over to our 401K accounts. When we are done, we will have just Non-deductible IRA and we will convert them to Roth. By year end of 2020, we will have $0 balance for TIRA accounts so no pro-rata rule applies, except we have small change remaining now.

Two TIRA accounts have small interest amounts remaining after we rolled over all cash into 401K. One with $2.33, and one with $0.24. I plan to roll over again the one with $2.33. But the one with $0.24, I wonder if it is necessary to do anything since TurboTax seems to drop all small cents after full dollar amount.

 

[gauss]

I did something similar ~ 10 years ago. If I were in your shoes, I would just leave the interest in the TIRAs and when you do your Roth conversion you will pay tax on a few dollars of interest.

If I am not mistaken, you will have to file IRS form 8606 either way. Hopefully you should be an old pro by now with form 8606 if you have made non-deductible IRA contributions along the way, having submitted an 8606 each year you made a non-deductible contribution.

 

[OldShooter]

I rolled a TIRA from Fido to Schwab a couple of years ago and ended up with a Fido balance of a few cents. I assumed it was interest that had not been credited when the transfer happened. Like you I wondered what to do with it. The next time I looked it was gone and my Schwab account had the few cents of credit. I don't remember the elapsed time. Maybe a week or two after the initial transfer?

 

[RunningBum]

I suspect this is why I have $1.18 in an old Roth account in Vanguard, which I mentioned in another thread about Vanguard. Funny thing is I only see it in the paper end of year account statement. I can't see it anywhere online, nor did the Flagship rep I asked about this. They say they are checking further into it after I scanned and PM'd them with the paper statement.