No. of Recommendations: 0
TchrP said: You can have both Roth and traditional IRAs at the same time. You can also have any number of IRA accounts.

What you can't do is contribute more than a total of $2,000 (or your qualifying income, if less than $2,000) to all of them combined, per tax year.

So it is perfectly feasible to stop contributing to your traditional IRA, leave it as a traditional IRA (that is, no conversion), and begin contributing to a new and separate Roth IRA. There is also an income ceiling for Roth IRA contributions, but it is higher.

Just to comment about the income ceiling for Roth IRAs being higher. It is true that a tax-deductible traditional IRA has a lower income ceiling than a Roth IRA. However, one can contribute to a traditional IRA without the tax deduction at any income level. The benefit being tax-advantaged growth within the IRA.

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.