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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