Skip to main content
No. of Recommendations: 0
I have read in Pixy's column, Roy's book on taxes, or local paper that this can be done. Can someone please confirm that I can pay tax on distributions of traditional IRA at age 60 or 65 and then
roll the distributions over to the Roth IRA? Is there any benetfit in doing
so? thanks.

Print the post Back To Top
No. of Recommendations: 0
Dpurhar asks:

<<I have read in Pixy's column, Roy's book on taxes, or local paper that this can be done. Can someone please confirm that I can pay tax on distributions of traditional IRA at age 60 or 65 and then roll the distributions over to the Roth IRA? Is there any benetfit in doing so? thanks.>>

If you meet the AGI limits for the conversion ($100K or less), then as long as you pay the income tax due on the conversion you may move as much or as little of any distribution as you wish. Just remember that if you take the distribution personally, then you will be subject to a 60-day time limit for getting the money to the Roth. Also, whether that's a good move or not depends on your tax rate today versus that in the future, how long the money stays in the Roth, how you will pay the income tax bill, and the size of coupled with your desires for your estate. For some idea of the analysis you must do, see msg 1567 on this board at http://boards.fool.com/Message.asp?id=1040013000441002&sort=postdate. You should do a similar analysis for yourself.

Regards..Pixy
Print the post Back To Top