No. of Recommendations: 0
I was wondering about the difficulties that have traditionally been associated with non-deductible IRAs. The accounting doesn't seem that hard to me. I was also wondering whether, if my income got low enought to allow for conversion, if I could convert my non-deductible IRA to a Roth, and if there would be any difficulties with that process.

If you can do basic arithmetic there's nothing to Part I of Form 8606, which is where you do everything associated with nondeductible contributions. I think people's problems have arisen because they didn't keep good records and they didn't report their nondeductible contributions as they went along.

It's a piece o' cake to convert. If you convert the whole thing, you subtract your previously-taxed basis from the amount converted and you have your taxable conversion income. (See Part II of Form 8606.) If you only convert part you do the same 8606 Part I calculation you would do if you were taking a regular distribution.

Phil Marti
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
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.