December 8, 2017

TAX - Calculating the Pro-Rata Rule in 5 Easy Steps

If you hold both pre-tax and after-tax money in your IRA, you’ve likely heard of the pro-rata rule.

It’s important to understand how this rule is calculated and how it can impact your retirement funds.

In simple terms, the pro-rata rule is used to determine how much of a distribution is taxable when you have a combination of both pre-tax and after-tax dollars in your account.

As you proactively plan for retirement, understanding the tax implications of your various accounts can be key to maximizing your savings. Using the pro-rata rule to help determine the tax on your distributions can give you a better idea of how much money you’ll owe Uncle Sam in retirement.

Click here for a step-by-step guide to help you calculate the pro-rata rule.

For professional assistance with proactive tax planning for your retirement accounts, contact our office at 703-466-0477.

Securities offered through Triad Advisors, Inc Member FINRA/SIPC

Advisory Services offered through AMJ Financial Wealth Management LLC

AMJ Financial Wealth Management LLC is not affiliated with Triad Advisors, Inc.

Securities offered through Triad Advisors, LLC, Member. For more information, click a link below:
FINRASIPC 
Investment advisory services offered through AMJ Financial Wealth Management LLC

AMJ Financial Wealth Management LLC is not affiliated with Triad Advisors, LLC
lockphone-square