http://www.iraroth.net/2010/03/does-the-amount-converted-from-a-traditional-to-a-roth-ira-count-toward-the-5000-roth-contribution-limit/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.iraroth.net/2010/03/does-the-amount-converted-from-a-traditional-to-a-roth-ira-count-toward-the-5000-roth-contribution-limit/comment-page-1/#comment-657 Mike Thu, 04 Mar 2010 18:00:33 +0000 http://www.iraroth.net/2010/03/does-the-amount-converted-from-a-traditional-to-a-roth-ira-count-toward-the-5000-roth-contribution-limit/#comment-657 Your conversion amount does not count toward your contribution limit of $5,000, $6,000 if your over 50. There is a current income limit of $100,000 to qualify for a Roth conversion. If your over that income you can wait until 2010 when there is no income limit. Your conversion amount does not count toward your contribution limit of $5,000, $6,000 if your over 50. There is a current income limit of $100,000 to qualify for a Roth conversion. If your over that income you can wait until 2010 when there is no income limit.

]]> http://www.iraroth.net/2010/03/does-the-amount-converted-from-a-traditional-to-a-roth-ira-count-toward-the-5000-roth-contribution-limit/comment-page-1/#comment-656 efflandt Thu, 04 Mar 2010 17:46:00 +0000 http://www.iraroth.net/2010/03/does-the-amount-converted-from-a-traditional-to-a-roth-ira-count-toward-the-5000-roth-contribution-limit/#comment-656 Conversions are separate from contributions. You have to pay income tax on the amount converted, but it is best to do a direct transfer and tell them not to withhold anything and pay the tax with other money. Otherwise the withholding would be subject to 10% penalty (if under age 59.5). Each converted amount has to remain in the Roth IRA for 5 years to avoid penalty. So you can still contribute the full annual contribution limit (which is a grand total for any and all types of IRA's). Conversions are separate from contributions. You have to pay income tax on the amount converted, but it is best to do a direct transfer and tell them not to withhold anything and pay the tax with other money. Otherwise the withholding would be subject to 10% penalty (if under age 59.5). Each converted amount has to remain in the Roth IRA for 5 years to avoid penalty. So you can still contribute the full annual contribution limit (which is a grand total for any and all types of IRA’s).

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