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477: Year-End Tax Planning Tips You NEED to Know Before the 2024 Tax Season

BiggerPockets Money Podcast

CHAPTER

Avoiding Double Taxation on Backdoor Roth IRA

In this chapter, they discuss the potential problems that can arise when doing a backdoor Roth transaction if there is an old rollover IRA from an old 401k. They explain the pro-rata rule and how having an old rollover IRA can lead to double taxation on the backdoor Roth IRA. However, they provide a remedy to this issue by suggesting transferring the money into the current employer's 401k through a direct trustee to trustee transfer.

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