Q. Hi Dan. In your last column you wrote about “… a rather infamous provision dubbed the ‘pro-rata rule.’” One of my IRAs is non-deductible, so I need to know what that is and why it’s infamous. Can ...
High earners who execute the backdoor Roth IRA correctly still generate an unnecessary tax bill through one specific timing error. The strategy itself is sound. The execution is where the money leaks.
Pro rata ensures equal treatment based on stake or time in financial transactions like mortgages. When shifting insurance mid-plan, pro rata calculations secure partial refunds based on unused ...