How long to keep IRA records?

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ryman554
Posts: 1329
Joined: Sun Jan 12, 2014 9:44 pm

Re: How long to keep IRA records?

Post by ryman554 »

retiredjg wrote: Thu Aug 17, 2017 9:39 am
Billionaire wrote: Wed Aug 16, 2017 11:06 am Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606.
There is another "work around" similar to the one I mentioned above, but closer to what you had in mind.

You could roll just what you call the "deductible IRA" into your 401k before retirement. Then liquidate your "non-deductible IRA" as you had planned knowing that tax will be due. Then roll the entire 401k to IRA and continue on as you had planned.

Second (and better) variation....You could roll just what you call the "deductible IRA" into your 401k before retirement. Convert the other IRA to Roth, again expecting to pay tax next tax day. After December 31 (this is crucial), roll the entire 401k to IRA and continue on as you had planned. I like this plan better because it moves money to Roth instead of taxable, with the same amount of tax paid.
For both cases, you have to roll the 401k back to IRA after December 31, don't you? Now you're going to make me look up the 8806 calculations.....
Billionaire
Posts: 339
Joined: Sat Jan 04, 2014 3:05 pm

Re: How long to keep IRA records?

Post by Billionaire »

kaneohe wrote: Wed Aug 16, 2017 11:22 am
Billionaire wrote: Wed Aug 16, 2017 11:06 am Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606.
so are you still selling the TIRA w/ non-deductible contributions? Why or why not? Have you taken any withdrawals from IRA?
I'm not in a rush to make a decision. Even if I do nothing, it's not a big deal. I'm flexible.
Billionaire
Posts: 339
Joined: Sat Jan 04, 2014 3:05 pm

Re: How long to keep IRA records?

Post by Billionaire »

retiredjg wrote: Thu Aug 17, 2017 9:39 am
Billionaire wrote: Wed Aug 16, 2017 11:06 am Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606.
There is another "work around" similar to the one I mentioned above, but closer to what you had in mind.

You could roll just what you call the "deductible IRA" into your 401k before retirement. Then liquidate your "non-deductible IRA" as you had planned knowing that tax will be due. Then roll the entire 401k to IRA and continue on as you had planned.

Second (and better) variation....You could roll just what you call the "deductible IRA" into your 401k before retirement. Convert the other IRA to Roth, again expecting to pay tax next tax day. After December 31 (this is crucial), roll the entire 401k to IRA and continue on as you had planned. I like this plan better because it moves money to Roth instead of taxable, with the same amount of tax paid.
Thanks, I greatly appreciate the creative advice.
retiredjg
Posts: 42248
Joined: Thu Jan 10, 2008 12:56 pm

Re: How long to keep IRA records?

Post by retiredjg »

ryman554 wrote: Thu Aug 17, 2017 10:58 am
retiredjg wrote: Thu Aug 17, 2017 9:39 am
Billionaire wrote: Wed Aug 16, 2017 11:06 am Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606.
There is another "work around" similar to the one I mentioned above, but closer to what you had in mind.

You could roll just what you call the "deductible IRA" into your 401k before retirement. Then liquidate your "non-deductible IRA" as you had planned knowing that tax will be due. Then roll the entire 401k to IRA and continue on as you had planned.

Second (and better) variation....You could roll just what you call the "deductible IRA" into your 401k before retirement. Convert the other IRA to Roth, again expecting to pay tax next tax day. After December 31 (this is crucial), roll the entire 401k to IRA and continue on as you had planned. I like this plan better because it moves money to Roth instead of taxable, with the same amount of tax paid.
For both cases, you have to roll the 401k back to IRA after December 31, don't you? Now you're going to make me look up the 8806 calculations.....
I don't think so. Let me think about it. I'll contact you by private message.
Edited to add, you are correct. Thanks for catching that! I edited my post.

Sorry about the hijack RudyS. :(
Last edited by retiredjg on Thu Aug 17, 2017 4:43 pm, edited 2 times in total.
kaneohe
Posts: 6742
Joined: Mon Sep 22, 2008 12:38 pm

Re: How long to keep IRA records?

Post by kaneohe »

ryman554 wrote: Thu Aug 17, 2017 10:58 am
retiredjg wrote: Thu Aug 17, 2017 9:39 am
Billionaire wrote: Wed Aug 16, 2017 11:06 am Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606.
There is another "work around" similar to the one I mentioned above, but closer to what you had in mind.

You could roll just what you call the "deductible IRA" into your 401k before retirement. Then liquidate your "non-deductible IRA" as you had planned knowing that tax will be due. Then roll the entire 401k to IRA and continue on as you had planned.

Second (and better) variation....You could roll just what you call the "deductible IRA" into your 401k before retirement. Convert the other IRA to Roth, again expecting to pay tax next tax day. After December 31 (this is crucial), roll the entire 401k to IRA and continue on as you had planned. I like this plan better because it moves money to Roth instead of taxable, with the same amount of tax paid.
For both cases, you have to roll the 401k back to IRA after December 31, don't you? Now you're going to make me look up the 8806 calculations.....
I believe you are correct...........whenever you "hide" TIRA in 401K, if you bring it back before end of year, it becomes visible again and defeats the
purpose of hiding it in the first place. The wording is a bit awkward.....if you roll 401K back to TIRA, it needs to be done after Dec.31 but you
don't HAVE to roll it back at all unless you want to.
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