If I have a traditional IRA and I want to convert it to a Roth IRA, does the conversion count against my yearly contribution?
No. Contribution means putting in "new" money.
Archive for Conversion – Page 2
My wife and I want to convert our traditional IRAs to Roth IRAs this year (and pay the taxes on the applicable amount).
Here are some questions for those of you with the knowledge level:
1) can we do the conversion at any point, or does it have to be at the end of the year (I doubt it's the latter).
2) what price are we to use: the total amount in the accounts at the end of, say, April? And our advisor notes this and we pay (applicable) taxes on this amount?
3) can we go back to the beginning of the year and say that we want to convert THAT amount (the account was not worth as much back then… but I'm doubtful one can back-date something like this).
My appreciation to the time and effort anyone puts into answering these questions.
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Categories : roth iras 2010
I heard that soon anyone can convert their IRA to Roth IRA without an income limit. Is this true?
If so, I am 51 years old and have $350,00 in SEP IRA and $45,000 in non-deductible IRA.
Should I convert all to Roth IRA? or can you do such a thing?
It comes a certain age where its just not worth it to do the conversion.
We are not going to do it since we know our taxable rate will be lower when we retire.
We will continue to take tax advantage of the IRA tax contribution now.
I hope we are doing the right thing.
Just wanted you to see the other side.
After age 35 those Roths – just dont make sense.
Would love to see the other answers.
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Categories : roth ira limits
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Tuesday,
June
28th,
2011
no beause i think that it is not true at all
Keep me updated. That would be amazing. (I am not betting on it, so)
In 2010, the income cap will be removed for converting traditional IRA's to Roth IRA's. It's an opportunity for those who have been phased out of converting to Roth's.
You still have to include the conversion into your ordinary income on your 1040…. hence, it's still taxed.
Killavil has that old sickness.
***** IRA stands for Irish Republican Army. Don't **** with the Irish! but yeah I believe thats true.
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Categories : roth ira 2010
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Sunday,
June
12th,
2011
I am allowed a $5000 Roth contribution. I want to take $2000 from my traditional IRA and convert it into an existing Roth IRA. Can I put in $5000 PLUS the $2000 conversion, or does the conversion limit my contribution to only 3000 additional dollars this year?
Conversions are separate from contributions. You have to pay income tax on the amount converted, but it is best to do a direct transfer and tell them not to withhold anything and pay the tax with other money. otherwise the withholding would be subject to 10% penalty (if under age 59.5). Each converted amount has to remain in the Roth IRA for 5 years to avoid penalty. so you can still contribute the full annual contribution limit (which is a grand total for any and all types of IRA's).
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Categories : roth ira limits