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Financial Planning / Tax Strategies
|Subject: Re: 457 Plan Rollover to Roth IRA||Date: 1/8/2013 10:59 PM|
|Author: TMFPMarti||Number: 117323 of 122503|
Well, I don't foresee any possibility of rolling the 457-Roth funds into a future employer plan in the future....so no need to track that. Also, I don't anticipate any need to pull out the rolled/converted funds within in the next 5 years...so no need to track the holding time.
Tax law doesn't care even if you were. I asked what you are planning to do, not what you aren't planning to do.
Let's say you're going to invest in five stocks. You buy them in the traditional IRA then convert into five Roth accounts, one for each stock. Come 10/1/2013 you see that three are winners and two are big losers. You can recharacterize only the losers, thus eliminating the "phantom" income from only those conversions. If everything's in one account you can't isolate just the loss for recharacterization.
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