No. of Recommendations: 0
Greetings, Mbwaters, and welcome. You asked:

<<I have an IRA that I would like to convert to a Roth IRA. The taxes will be too high if I convert it all at once. From reading the IRS Pub 590 regs I think I understand I could transfer a portion of my IRA to the Roth every year without having to convert it all at one time. If this is true it would be great because I work overseas and can use my deductions to offset the small transfers every year for about 4 years with no taxes having been paid. If anyone can verify this I would appreciate the info.>>

Your understanding of the provisions of IRS Pub 590 is correct and right on target. You may transfer as little or as much of a traditional IRA to a Roth IRA as you wish. The only requirement is that you meet the adjusted gross income limits in the year of the transfer. Therefore, if you wish to transfer a traditional IRA over a four-year period, you may do so.

Regards..Pixy
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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