Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: kljorgensen One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124944  
Subject: Ohio tax benefit for conversion of TIRA to RIRA Date: 3/9/2005 7:30 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Finished my taxes last night and was surprised by a $171 Ohio tax credit that we got from the conversion of my spouses TIRA to Roth.

In Ohio there is a joint income credit that you get if both spouses have at least $500 of income. Since my spouse does not work she had no income for the year and I did not expect to get the credit. Last year, however, we converted her small TIRA to a Roth which generated about $2k of income for her and resulted in a $317 federal tax obligation. This we anticipated and felt it was in our best interest. This income qualified us for the joint income credit and gave us the $171, so the true cost of her IRA conversion was $146 or only about 7%.

I know this is a bit of a unique case but I thought it might be useful to someone to know about.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.