I make 63500 k and I have 39000 in an IRA that I would like to convert it to a Roth. my taxable income was 33056 this year and I will get about a 3% raise. I don't want to have the conversion bump me up to higher tax bracket. How much can I convert?
Call your financial advisor and ask them, I think that would be the most helpful tip.
You'll need to visit with the bank where you want to put the new IRA. The problem is that the Traditional IRA is pre-tax money and the Roth is after-tax money, so you'll have to pay taxes on whatever amount you convert… that means you'll want to probably make estimated tax payments throughout 2007 if you convert much of this.
I seriously doubt that anyone other than a tax advisor can tell you the actual amount you'll want to convert because your individual tax rate will depend on other factors which will affect the tax return.
you can just visit this site to get your doubts clear
theusefulinfo.com/finance/roth.ht…
Or
theusefulinfo.com/finance/compare…
Its very useful
You obviously make enough that you should hire a CPA, rather than taking your chances on incorrect answers in this forum.