A Guide to the Pro-Rata Rule and Roth IRAs - SmartAsset
Jan 7, 2026 · Since a backdoor Roth conversion involves transferring funds in a traditional IRA to a Roth IRA, the pro-rata rule applies. If you have never contributed after-tax money to a traditional …
What Is the Pro Rata Rule for Roth IRA Conversions? | Thrivent
Dec 17, 2024 · The pro rata rule is a requirement by the IRS that prevents taxpayers from selectively converting only the after-tax portion of their IRA to a Roth IRA. Instead, it's taxed in proportion to …
What Is the Pro Rata Rule for Roth Conversion? - LegalClarity
Jan 27, 2026 · The Pro Rata Rule uses a formula to find the non-taxable percentage of a Roth conversion. This percentage is found by taking your total after-tax basis and dividing it by the sum …
How the Pro-Rata Rule Affects Your Backdoor Roth IRA
Jan 14, 2026 · Even if only a small slice of your IRA money is after-tax, your Roth conversion gets spread proportionally across the total. That means a big chunk of your conversion may be taxed, …
Pro-Rata Rule Explained: How It Affects Backdoor Roth | SDO CPA
Jan 30, 2026 · The pro-rata rule determines how much of your Roth conversion is taxable. Step-by-step calculation, examples, and how business owners can avoid it.
The Pro-Rata Rule Can Impact Your Roth Conversion Strategy
Nov 3, 2025 · Traditional IRAs containing both pre-tax and after-tax assets are subject to the pro-rata rule for Roth conversions and for distributions. The formula utilized under the pro-rata rule …
How to Pay Taxes on Roth IRA Conversions: Essential Guide and Tips …
Dec 12, 2025 · The pro-rata rule requires that any Roth conversion includes a proportional mix of pre-tax and after-tax dollars based on the aggregate balance across ALL your traditional, SEP, and …
The Pro Rata Rule Made Simple (And How to Avoid Surprise Taxes)
Dec 2, 2025 · Learn how the IRA pro rata rule impacts Roth conversions - and how to avoid surprise taxes. This guide explains what the rule is, why it matters, and provides smart strategies, such as …
Roth IRA Conversion – The Pro Rata Rule Is Lurking
Sep 26, 2025 · What is the Pro Rata Rule and why does it matter? The Pro Rata Rule requires you to treat all your IRA accounts as one when calculating the taxable portion of a Roth conversion.
How the Pro-Rata Rule Impacts Your Backdoor Roth Contributions
Jan 23, 2026 · What is the Pro-Rata Rule for a Backdoor Roth? For the Roth Conversion step when performing a Backdoor Roth contribution, the pro-rata rule says that all IRAs are treated as one IRA.