I can't see any reason or ability to convert to a Roth. My wife and I make over 200K so my taxes would kill me.If the conversion is a 'back-door' Roth conversion of a non-deductible IRA contribution that was made only a day before - there should be little/no tax consequences, as you have already paid taxes on the contribution, and in 1 day (especially if you were planning on doing the conversion) you are likely to have little or no gain on the contributed amount. This is a way for taxpayers with incomes that are too high to contribute to a Roth to be able to make contributions each year.However, unless you don't have any other traditional IRAs, because of the pro-ration that occurs when calculating taxes on conversions, you will likely pay taxes on a large portion of the converted amount. One way to 'not have any other tradtionsl IRAs' is to convert all of your traditional IRAs, which could be a pretty big tax hit, as you point out. Another way to 'not have any other traditional IRAs' would be to move all of your IRAs to your current employer's 401(k) plan, because a 401(k) is not an IRA, and therefore, is not counted as part of the pro-ration calculation.AJ
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<