The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/i-have-a-couple-small-iras-about-4500-total-30599835.aspx

Subject:  Re: Convert to Roth vs Distribution and straight Date:  3/21/2013  6:35 AM
Author:  TMFPMarti Number:  118096 of 121219

I have a couple small IRAs (about $4500 total) that I want to close. I plan to make a Roth contribution also. For simplicity I was going to just take as a taxable distribution and separately make a contribution to the Roth for the full allowable amount. Is there any benefit to rolling them into the Roth instead? Seems like the taxes would be the same. Another question, with a rollover could I also contribute the full amount too and thus increase my Roth by more?

The advantage to doing the conversion is the answer you your second question. The conversion doesn't affect your ability to make a contribution. They're totally separate events. See Pub 590.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us