Skip to main content
No. of Recommendations: 1
This post is all about Part I.

A little terminology issue here.

If you have a Traditional IRA, you can convert it to a Roth IRA if your income falls within limits based on your filing status. These limits are not all the same as the limits for contributing to a new Roth IRA.

But if you change "recharacterize" to "convert", and change "eligible to contribute" to "eligible to convert", then your intuition is correct.

A small point on (d): Withdrawals from an IRA are tax-free as long as the circumstances of the withdrawal match what the IRS allows. However, tax laws may change in the future to narrow the definition of allowable withdrawals.

Another point on (d): You probably won't be withdrawing the whole IRA balance right at age 59. In fact, since the IRA is tax-deferred, you may wish to wait as long as possible before withdrawing from it!
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!
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.