Comments on: Can I open a non-deductible as well as a deductible IRA and convert them both to Roth IRAs next year? http://www.iraroth.net/2010/01/can-i-open-a-non-deductible-as-well-as-a-deductible-ira-and-convert-them-both-to-roth-iras-next-year/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: the tax lady http://www.iraroth.net/2010/01/can-i-open-a-non-deductible-as-well-as-a-deductible-ira-and-convert-them-both-to-roth-iras-next-year/comment-page-1/#comment-463 the tax lady Sat, 23 Jan 2010 17:24:34 +0000 http://www.iraroth.net/2010/01/can-i-open-a-non-deductible-as-well-as-a-deductible-ira-and-convert-them-both-to-roth-iras-next-year/#comment-463 In theory yes. For 2009, your limit for all types is $5000. If you are single, covered by a plan at work and have income between $53,000 and $63,000, you will be limited on how much you can deduct--so some would be deductible and some wouldn't. (You don't need two IRAs, this is just record keeping.) Then in 2010, you could roll all of the money to a Roth and only pay taxes on the portion that you got a deduction for in 2009. This would only be beneficial, taxwise, if you are in a LOWER tax bracket in 2010, say from losing your job or retiring. In theory yes.

For 2009, your limit for all types is $5000.
If you are single, covered by a plan at work and have income between $53,000 and $63,000, you will be limited on how much you can deduct–so some would be deductible and some wouldn’t. (You don’t need two IRAs, this is just record keeping.)

Then in 2010, you could roll all of the money to a Roth and only pay taxes on the portion that you got a deduction for in 2009. This would only be beneficial, taxwise, if you are in a LOWER tax bracket in 2010, say from losing your job or retiring.

]]> By: jlf http://www.iraroth.net/2010/01/can-i-open-a-non-deductible-as-well-as-a-deductible-ira-and-convert-them-both-to-roth-iras-next-year/comment-page-1/#comment-462 jlf Sat, 23 Jan 2010 17:00:20 +0000 http://www.iraroth.net/2010/01/can-i-open-a-non-deductible-as-well-as-a-deductible-ira-and-convert-them-both-to-roth-iras-next-year/#comment-462 There is no such thing as "deductible" and "non-deductible" IRAs. Whether IRA CONTRIBUTIONS are deductible in a given tax year depends on income and certain other factors. There is no such thing as “deductible” and “non-deductible” IRAs. Whether IRA CONTRIBUTIONS are deductible in a given tax year depends on income and certain other factors.

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