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Roth IRA Conversion Pro Rata Rule

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Money Talk > Retirement Planning

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keegan
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Roth IRA Conversion Pro Rata Rule  Reply with quote  

Hi everyone,

I was looking to take advantage of the backdoor ROTH, and luckily read up on the pro rata rule.

I do have other traditional and rollover IRA accounts. My question is if the pro rata applies to all IRA accounts across brokerage firms?

For example, my current IRA accounts are in Vanguard. If I were to open a traditional IRA account in say Fidelity and convert that to a ROTH, does the pro rata rule apply?

Thanks for any help you could offer.
Post Sun Jan 17, 2016 3:02 pm
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blixet
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The short answer is yes. The pro rata rule applies to the aggregate value of your IRAs regardless of where they are held.

Information is more valuable sold than used – Fischer Black
Post Mon Jan 18, 2016 2:51 pm
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