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Financial Planning / Tax Strategies
|Subject: Taxes, IRA to ROTH conversions..FEIE||Date: 8/15/2013 5:00 PM|
|Author: serRenely||Number: 119006 of 122912|
I have a tax question. I realize I need to see a tax person, but most don't seem to get my situation at all.
My company was sold, so I can roll my 401k to an IRA….yay! I plan to do that. I have two questions and I hope I state them clearly and correctly below:
My income is foreign earned, so it pretty much all falls under the FEIE. I live overseas all year. I am single. I have no property in USA.
1) I roll my 401K to an IRA and say its value is 30k. I then want to convert my IRA to a ROTH with paying as little of my own money as I can. I believe I can do this over a period of years by using my standard deductions (roughly $5,800 can’t remember the amount) each year. Essentially I use my deductions for the taxes I would have to pay for this conversion. Is this allowed?
2) Ignoring question 1. As I currently understand it I cannot put money into a ROTH each year because my wages are FEIE and not seen as taxed income. Is this statement true? Is there a way in which I can put any money into a ROTH?
Any help would be appreciated. Let me know if more information is needed. I have a number of different answers for these questions and am all confused.
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