Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Depending on how the numbers shake out, it could have a negative impact on any EIC you might qualify for.

For TY2010, I used "H&R Block At Home" software to calculate my taxes. I realize that tax laws change from one year to the next, but I wonder if I could just re-calculate last year's taxes using the rollover vs. withdrawal scenarios?

Is there a reason you haven't considered, or have rejected, the idea of either leaving the Simple IRA in place or rolling it to a traditional IRA for no tax impact?

I have a reason, but it's emotional, not logical. The idea of tax-free growth in the Roth appeals to me. The fact that I expect my income this year to be very low makes now seem like the ideal time to do this. Superficially, it won't seem like any money out of my pocket, since EIC and child tax credits are so big, doing a Roth Rollover (tax only) or taking it as a distribution (tax + penalty) will most likely only reduce the (relatively massive) 'refund' I'll get.

BTW, I'm expecting to graduate in December, and I've already started looking for a full-time job. I hope and expect my income next sear to be at least a 3x multiple over this year's income.
Print the post  

Announcements

Disclaimer:
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.
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.