UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next
Author: hbogart Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: Re: Roth conversion complicated by other factors Date: 2/24/2001 2:36 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
OK, wait, I seem not to have made myself clear...

There are 2 (potential) Roths here.
A converted Roth that I could still recharacterize before 4/15. Leaving this 8.2 account converted is going to cost me about 2.8k in taxes (28% plus lost educational credits.

A contributory Roth that already exists but to which I have not made my Y2K contribution. To make the contribution by 4/15 (actually 4/16 this year...) and come up with the $$$ to pay the tax on the conversion, I would have to take a $2k loan against my 403b. I could then always yank the $$$ back out of the contributory Roth to pay off the loan -- though this would be silly, it is possible, if, for example, an unanticipated medical emergency prevented me from completing the extra projects I am taking on at work that will increase my salary this summer (see original post).

I do understand that the money I pay back to the 403b is taxed.

I also understand that I cannot access the funds in the converted Roth for 5 years.

I cannot convert part of the Roth next year or for the foreseeable future, because our AGI appears likely to exceed the $100k limit for conversions.

Anyway, more thoughts appreciated...
HB
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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