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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75797  
Subject: Re: make too much for IRA Date: 2/19/2012 5:26 PM
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Hi, I made too much and have a 403 at work and hence cannot contribute to IRA. however, I heard that I can contribute to IRA but not take the tax benefit ( have to submit some specific form to IRS)but soon after convert the IRA to Roth.

It's true - to a point. You missed hearing a very important caveat. Do you have any other IRAs that have pre-tax money in them (traditional IRAs, rollover IRAs, etc.)? If so, when doing the conversion, the conversion will be taxed based on the % of IRA assets that are pre-tax. If you have pre-tax IRAs, the only way to convert 100% of the post-tax IRA contribution is to convert 100% of your IRAs to a Roth IRA.

See IRS Pub 590 for details.

AJ
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