I had made (Edit: pre-tax) contributions (~$11000) to a traditional IRA before I had realised about the pro-rata rule for future (possibly in a couple of years in my case) Backdoor Roth IRA contributions. I am trying to figure out the best way to move the assets in the traditional IRA in order to avoid penalties or significant taxes.
Can I directly move all my tIRA to my 401K (not yet sure if mine allows for this to happen) without any tax consequences? What about the earnings? Also, if the 401K doesn't have the same funds how would this work?
Alternatively I'm thinking of using the $10000 first home buyer exception to get most of the money out of the tIRA and bite the bullet with the rest. Am I understanding this correctly or are there better alternatives?
Any solutions are welcome. Thank you.
Submitted May 22, 2019 at 07:17AM by octamer http://bit.ly/2M2ClQE
