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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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If i move an ira partially funded with nondeductible

Customer Question

if i move an ira partially funded with nondeductible contributions into a 401k is the 401k disqualified. is it possible to leave behind the nondeductible portion or are all contributions from any ira account containing non deductible contributions done pro rate when rolling into a 401k?
Submitted: 3 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 3 months ago.

Hi. Great Question. You can actually leave the IRA as is and have a separate 401k account.

Expert:  ABC Accounting Group replied 3 months ago.

Let me know if you have any questions. Thank you.

Customer: replied 3 months ago.
But i wish to move the $$'s into the 401k and leave behind the nondeductible ira contributions and comvert them to a roth hence the rationale behind the original question
Expert:  ABC Accounting Group replied 3 months ago.

Thank you for confirming. If it is a 401k with your employer - you cannot transfer $'s from your IRA to an employer's 401k. Just confirming. The nondeductible ira contribution - you can convert to a Roth IRA.

Expert:  ABC Accounting Group replied 3 months ago.

Just confirming the 401k account. Thank you.

Customer: replied 3 months ago.

i am the employer and the plan allows incoming transfers

Expert:  ABC Accounting Group replied 2 months ago.

You are able to do the transfers as specified, then.