How Many IRAs Do You Have?

Описание: You may reasonably believe that you have three IRAs. But Congress and the IRS don't agree. ;-)

00:00 Traditional IRAs are Aggregated
00:51 Pro-Rata Rule
02:10 Roth IRAs are Aggregated
03:13 Workplace Retirement Plans
04:11 Inherited Retirement Accounts
05:34 Conclusion

Under the distribution rules, IRAs are aggregated together. All the IRAs a person owns are aggregated into a single IRA for purposes of taxing distributions and conversions. The same aggregation rule applies to Roth IRAs. You only have one of those too.

Internal Revenue Code Section 408(d)(2) (applicable to traditional IRAs): https://www.law.cornell.edu/uscode/te...

Internal Revenue Code Section 408A(d)(4) (applicable to Roth IRAs): https://www.law.cornell.edu/uscode/te...

I wrote about the Pro-Rata Rule here: https://fitaxguy.com/the-backdoor-rot...

The two main exceptions are workplace retirement plans and inherited retirement accounts.

This video, the show notes, description, and any comments are for educational purposes only. They do not constitute tax, legal, financial, and/or investment advice for any person. Consult with your own advisors regarding your own matters.