Mar 23

Question by jekelnHide: Foreign earned income exclusion and Traditional IRA to Roth IRA conversion taxes/ capital gains?
I qualify for foreign earned income exclusion. This shows as a negative on income on the tax form. If I convert a traditional IRA to a Roth IRA, the IRS will withhold some taxes. Since my income is negative, can I get these taxes back at the end of the year? Alternatively, can my negative income offset capital gain taxes?
Using the Turbotax program, it takes the value from form 2555, and places it as a negative number in form 1040. Reading the instructions from form 2555, it says to place the value in parenthesis which indicates a negative, correct?

Best answer:

Answer by Jss
How can you have negative income unless you have loss from business or capital loss?
Just making sure that you are doing Form 2555 correctly.

Yes, it is always better to withdraw from IRA only when you have minimum income
For articles on your U.S. tax return, http://taxipay.blogspot.com/2008/04/list-of-articles.html

Know better? Leave your own answer in the comments!


Aug 19

I qualify for foreign earned income exclusion. This shows as a negative on income on the tax form. If I convert a traditional IRA to a Roth IRA, the IRS will withhold some taxes. Since my income is negative, can I get these taxes back at the end of the year? Alternatively, can my negative income offset capital gain taxes?
Using the Turbotax program, it takes the value from form 2555, and places it as a negative number in form 1040. Reading the instructions from form 2555, it says to place the value in parenthesis which indicates a negative, correct?


Jul 2

Accounting: Weighing the pluses and minuses of Roth IRA conversion
Also: Finance bill excludes extension of COBRA subsidy

Read more on North Bay Business Journal


May 22

Roth conversion may impact financial aid
A Roth conversion could impact your student’s financial aid package, but you can address the problem.

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Apr 11

Roth IRA Conversion: No Consumer Rush on Tax-Free Switch
Convert your IRA to a tax-free Roth IRA, the financial advertising says. But so far, few retirement savers are taking the cue

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Apr 11

New opportunities arise for Roth IRA conversion
according to Edward Jones financial advisors in the local community. traditional IRA.

Read more on Fort Myers Beach Bulletin & Observer


Apr 4

Survey Finds Most Americans Unaware of New Roth IRA Conversion Options
ST. LOUIS—-A new survey commissioned by online investing firm Scottrade finds most Americans are unaware of the new 2010 Roth IRA conversion rule changes that removed the $100,000 income limit for certain IRA conversions, an option that will benefit many of those who are unfamiliar with the new rules.

Read more on Business Wire via Yahoo! Finance


Apr 4

4 steps to undo a Roth IRA conversion
Follow these four helpful hints to correctly recharacterize your Roth to a traditional IRA.

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Mar 11

2 Questions:

1. I am retired with only a pension as income. I have not contributed to an IRA for several years. Am I allowed to convert some of my traditional IRA money into a 2009 Roth IRA?

2. What is the deadline for the transaction mentioned above? Is it 12/31/2009 or is it 4/15/2010?


Dec 29

I have an IRA in the 6 figures range. In 2010 anyone regardless of AGI will be allowed to convert IRA accounts to Roth IRA accounts. The advantage of this is that all future gains will be tax free.

The rules regarding what IRA investments can be in are rather loose so you are not restricted to just stocks, bonds and the usual stuff.

Under this conversion, I’ll need to pay tax on the value of my account that has not previously been taxed.

I am thinking that there might be a way (loophole) to have my IRA invested in something that has an artificially low value at the time of conversion (2010) but has a high value in 2011 or other time in the future. What ideas do you have of such a scenario?


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