I have a basis on a regular ira (A) and have converted a 401k into an another separate ira (B). I want to convert the former 401k (B) into a roth.
Can I apply the basis on the regular ira (A)to the converted 401k (B) now that it’s an ira?
To convert or not to convert?
Nary has a day gone by that I don’t get an e-mail, phone call, or have a conversation concerning ROTH conversions. Now that tax season has come and gone for many of us, I thought this article would be timely. Although I generally attempt to avoid technical discussions in these articles, there is clearly widespread confusion as to whether converting your traditional Individual Retirement Account …
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Does the age matter if I will convert to Roth? I don’t have any bills, no mortgage and in the 25% tax bracket. My health is great too.
I currently have a deductible IRA.
I have a Rollover IRA that has lost half its value. If I convert it to a Roth IRA, I will pay taxes now, but it will grow tax free from now on. Should I convert it now, or should I let it ride, and pay taxes down the road (25 years)?
This is my scenario. I currently have a ROTH IRA. For this and next year I would like to take out a traditional IRA, and in a few years (2010) convert this to my current ROTH IRA. I had read somewhere I thought you can only do a rollover like this one time. Does anyone know the rules on this? Thanks!
Thanks for the answers. I know it’s kind of tricky. I would rather get the tax break now and pay the taxes in a couple of years because of my financial situation. But i would want to do it all at once. For example, rollover the total of all my traditional IRAS into my existing ROTH. Don’t mind paying the taxes at that time, but dont want it counted as a withdrawl and get penalized, etc. I eventually just want it all in one account. I’m just scared there is a catch somewhere ( or will be in 2 or 3 years). Several years ago, they let you do that rollover thing all at once, and I did do it at that time.
To the last response from TBONE. You mentioned in 2010 you can rollover a traditional ira into a roth ira…this is the whole crux of my concern…I know I can roll it into “an IRA” but can I roll it into “an existing IRA” that I had before i started opening up the traditional iras?
Thanks!
Money you withdraw from your IRA account are counted as income. If you have regular savings set aside, you don’t necessarily need to spend the IRA withdrawal, so you put it into Roth IRA to let it grow tax-free. How much can you convert regular IRA money to Roth IRA money each year? Is this capped by the Roth IRA contribution rule?
I currently have two IRAs, a Rollover IRA worth $7,100 and a Roth IRA worth $1,000. They are both at the same brokerage.
Is it wise for me to convert my Rollover IRA to my current Roth? What kind of penalties and taxes will I have to pay? Is there a better way to minimize taxes? Should I have the tax withheld or should I pay from the taxes/penalty from an outside source rather than from the IRA?
My current gross income is around 45k and in the 25% tax bracket.
I currently have 2k in a rollover IRA, & have read its best to have a Roth. If I convert, how much do I have to pay in taxes next year? Should I pay it out of pocket or out of the Rollover IRA?
Some facts: 23 yrs old, will contribute $600 to the IRA this year & my AGI is around $32k (I know the amounts are small, but I’m doing the best I can!)
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