Mostly, yes. Except the part about you being out of luck.1. Am I interpreting that special rule correctly?
I do not know why 401k plans are not specifically listed. I've wondered this myself many times. They may be included under "qualified trust"? Or maybe it was just an oversight to leave this off the list (IRS Publications DO HAVE ERRORS and OVERSIGHTS).
Many people here have done a partial rollover of pre-tax money into a 401k to achieve just what you want....to separate the cream from the coffee.
Yes.2. Would rolling over the non-basis portion of my wife's TIRA into her 457 make sense?
Yes. If the 457 will accept the rollover, it is accounted for separately from the other 457b money. That rollover money, since it is not from another governmental 457, would not be available for early withdrawal without a penalty. But that should not affect her contributions.3. Any concerns about doing a rollover into a 457? I learned recently that, after leaving your employer, you can withdraw funds from a 457 penalty-free. But if you rollover funds from a 457 into an IRA, you lose that ability. Would we maintain the ability to do penalty-free withdrawals from the 457 if we rolled over a TIRA into it?
Your preference. Rolling over two IRAs is a little work but it is one time work. Pro-rating lasts forever.4. Am I actually overcomplicating all this by attempting to make it simpler? Should I just deal with the pro-rata rule when doing the Roth conversion?
Statistics: Posted by retiredjg — Mon Aug 05, 2024 4:50 pm — Replies 10 — Views 388