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I want to convert my traditional IRA into a roth but am still confused about the rules. Can converted money be used for example, a new house, or just any new money put into the Roth?


Hi,

I think what you are asking is if you convert the money from a traditional IRA in to a Roth, will you still be able to use the money as a first-time homebuyer. I'm not an expert, but I would think you could. On the other hand, why move the money to a Roth unless the house is a long way down the line.

You will want to post your question on the Tax Strategies discussion board to make sure what I'm saying is correct. Here is a link:
http://boards.fool.com/Messages.asp?bid=100145

You may also want to read this series:
All About IRAs
www.fool.com/money/allaboutiras/allaboutiras.htm

There is a link for 1st Home Buyer on the right of the page. Maybe you want to leave the $10,000 you could use to buy the home in the traditional IRA to lessen the conversion tax burden this year.

Fool On,

Keith O'Malley
TMF KGOMalley
Links: http://boards.fool.com/Message.asp?mid=15111334

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