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The google term you want is “structured transaction.” Any sequence of legal transactions clearly designed to do an illegal thing when done directly is to be tre
by garmaine 8y ago
The google term you want is “structured transaction.” Any sequence of legal transactions clearly designed to do an illegal thing when done directly is to be treated the same as if it had been done as a single step.
The point of waiting e.g. 30 days is EXACTLY that it exposes you to gains/losses and you can rightly say the two actions are no longer connected.
- kuhhk 8y agoInteresting, I've always been informed that waiting one day is sufficient. But, didn't the backdoor roth get closed in the recent tax change?
- stouset 8y agoIt didn’t, and doing an immediate rollover is not considered structuring since rolling over IRA contributions into a Roth is explicitly legal.
- stouset 8y agoYou are confused as to the definition of a “structured transaction”. There is no issue with performing an immediate rollover. Rolling over IRA contributions into a Roth is not only legal, it is explicitly endorsed by the IRS.