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Financial Planning / Tax Strategies


Subject:  Re: IRA Conversion Date:  5/6/2011  11:51 AM
Author:  vkg Number:  113359 of 127637

I do not know of a tutorial.

Partial conversions are allowed. It is your decision on how much to convert in any one year.

Have you made after-tax contributions to your Traditional IRA? If you have, then rolling a 401K/403B to an IRA could dilute the tax basis resulting in more taxable income on conversions.

The taxable amount of the conversion is added to your income. It is taxed as regular income.

Non-trustee-to-trustee rollovers are restricted to one per account per year. Trustee-to-trustee rollovers do not have the same restriction, but the best of plans can be undone by incompetent service reps. You are planning on consolidating accounts. It is best to plan on rolling accounts into the destination account, rather than into an intermediate account(s) then merging/moving the intermediate accounts.
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