medium · Certified Financial Planner Estate Planning
The Rourke family has a 90,000 traditional IRA (pre-tax) and 10,000 in after-tax contributions in a separate IRA.
If they convert 10,000 to a Roth IRA, what percentage of that conversion is taxable under the 'Pro-Rata' (Aggregation) Rule?
- 100%, because the 2025 Act eliminated the pro-rata treatment for all Roth conversions.
- 10%
- 90%
- 0%, because they are only converting the after-tax 10,000.
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