Tag Archives: after-tax IRA

Deductible Pretax Traditional IRA Contributions vs Nondeductible IRA Contribution

First, the term “Traditional IRA” refers to an IRA that is not a Roth IRA. A contribution to a Traditional IRA can come in two flavors. The first flavor is as a deductible pretax traditional IRA contribution and the second as a nondeductible (after-tax) IRA contribution. Nondeductible IRA: A nondeductible IRA is a traditional IRA […]

IRA Conversion & IRA Recharacterizations Differences

The IRA conversion and IRA recharacterizing rules can be easily confused. Following are the differences between these two IRA transactions. What is a conversion? A conversion occurs when IRA funds including assets (e.g., real estate, IRA owned LLC, notes, and even equities) are moved from a Traditional IRA, SIMPLE IRA, and SEP IRA to a […]