Contribution Basis is Prorated for Roth 401(k) Withdrawals But Not Roth IRA
In a designated Roth account like a Roth 401(k), each early distribution is treated as coming part from contribution basis and part from earnings.
In a designated Roth account like a Roth 401(k), each early distribution is treated as coming part from contribution basis and part from earnings.
In the eyes of the IRS, Roth conversions are a type of rollover and their part in your Roth IRA’s contribution basis is called a rollover contribution.
Under the Tax Cuts and Jobs Act, you are still allowed to make nondeductible contributions and still allowed to convert IRA assets to Roth IRA.
The University of Virginia plan includes funds sufficient to produce these excellent portfolios.
Even over the income threshold, you may still be able to add funds to your Roth IRA with what is called a backdoor Roth.
Sometimes, there isn’t enough to do it all. Even then, fund your Roth.
We have created several asset allocation tools to aid those seeking an intelligently diversified portfolio.