UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: zol Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76394  
Subject: Re: Trad IRA -- why? Date: 1/29/2010 12:13 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Another option - available this year and next unless (until) Congress make a change. Make the non-deductible IRA and then do an immediate conversion to a Roth. This works best if you don't have any other IRA accounts. It essentially gets around the income limit for Roth contributions.
------------------
This is exactly what I have been doing for the past 3 years due to income limits. (I guess it means I'm making too much money - that's a bad thing?). Since all my funds beside the NDIRA were in Roth's I had no issues other than the limits. 2 weeks ago I converted all my NDIRA to my ROTH accounts and have continued my EFT funding of my NDIRA. As I go down the road I will occasionally convert my NDIRA into my ROTH accounts until dear Uncle Sam decides I can't anymore.

It's a dance, but it is the only way to fund the Roth's at the moment.

MZ4


Does this mean that I could make both the 2009 and 2010 contribution to the Trad IRA and convert the account with both contributions now (before 4/15/10)? Is there a deadline for the conversion? Any reason why NOT to do that?

- zol
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement