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Pro-Rata Rule

Gold IRA Glossary

The IRS rule that treats all of your traditional, SEP, and SIMPLE IRAs as one pool when calculating the taxable portion of a Roth conversion. If your IRAs hold both pre-tax and after-tax money, each converted dollar carries a proportional share of both. The rule matters for backdoor Roth strategies and for converting a Gold IRA that includes nondeductible contributions.

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