The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Trad IRA to Roth Conversion||Date: 6/14/2008 1:55 PM|
|Author: ptheland||Number: 101050 of 124982|
In my traditional IRA I have some contributions which were non-deductible.
Can I convert those funds over to my Roth IRA without tax consequences
No. Everything that comes out of your traditional IRA must be prorated between the taxable and non-taxable portions.
or is there an income limitation for doing that?
Yes. To convert money from a traditional IRA to a Roth, you have to have less than $100k in MAGI. That income limitation is scheduled to be lifted in a couple of years (2010, I think), so if you make too much now, you may be able to do a conversion then.
My wife and I file jointly and are under the income limitations for contributing to a Roth, but I thought I heard somewhere that the income limitation for doing a conversion was lower than the contribution limitation.
For a married couple, it is. For a single person, it's the other way around.
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