Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I have a rather sizable 401K that's going to get rolled into an IRA.

If two people are married, and one has a job, and the other doesn’t, but each have separate IRA’s…could they file taxes “married filing separately” and the unemployed person move their regular IRA to ROTH (under the taxable limit) without incurring taxes on that money?


Do you think that would put us any further ahead than married-filing-jointly?

Beats me. There are a bunch of things you have to think about when filing MFS including, but not limited to, uniform deduction method (standard vs joint) and the inability of either to make a Roth contribution or the nonworking spouse to make any kind of IRA contribution.

I'd suggest you start your analysis by figuring out your plan for 2014. Do you plan to be unemployed the whole year? Will you be getting any kind of severance? Unemployment?

Then you really need to prepare the returns both ways. Software is the easiest route. I know TaxAct has a demo version of 2013 available now for free. There are no major law changes for 2014, and you can fine tune for the inflation-adjusted numbers later. The changes from 2013 are slight.)

Rule Your Retirement Home Fool
Print the post  


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.
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.