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Registered
Join Date: Aug 2003
Location: SF Bay Area
Posts: 7,953
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IRA to Roth?
Does a rollover IRA qualify for conversion to a Roth next year? TIA.
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12-20-2009, 07:35 PM
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Registered
Join Date: Jun 2007
Location: Lake Oswego, OR
Posts: 6,062
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I believe it qualifies when you roll if you want to. That said, it should qualify all years thereafter. You of course need to pay the taxes on it. 2010 is the year of the Roth, as the income limit has been dropped.
Make sense? I didn't completely understand your question. Larry |
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12-20-2009, 10:06 PM
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Cars & Coffee Killer
Join Date: Sep 2004
Location: State of Failure
Posts: 32,246
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More and more, a Roth seems like a smart bet. I don't see taxes going down any time soon...
I opened mine in August '08.
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Some Porsches long ago...then a wankle... 5 liters of VVT fury now -Chris "There is freedom in risk, just as there is oppression in security." |
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12-21-2009, 05:28 AM
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canna change law physics
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Quote:
Truly, it is a smarter version, but Congress-critters aren't smart. They are however voracious.
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James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
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12-21-2009, 06:14 AM
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Registered
Join Date: Aug 2003
Location: SF Bay Area
Posts: 7,953
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Quote:
I converted a 401k into an IRA a few years ago. I was wondering if a rollover IRA can be converted to a Roth or does the no income limit rule for 2010 only apply to an original IRA. I found my answer though in the link below. 2010 Roth IRA Conversion Rules |
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12-21-2009, 09:01 AM
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Detached Member
Join Date: May 2003
Location: southern California
Posts: 26,964
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Man, I read some of that link. It gave me a headache. Since the no income limit window is for 2010 for a conversion, I'm going to at least talk to my tax guy about it. I've had it so long and moved several 401Ks into my IRA over 30 years, I don't think I could differentiate between contrributions and growth. They were all pre-tax or never taxed as growth, so it may not be a good deal for me. Besides, I'll make less in retirement in 10-12 years.
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Hugh |
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12-21-2009, 09:46 AM
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Blockchain Tech Inventor
Join Date: Jan 1999
Location: US fn A!
Posts: 1,546
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I've been trying to figure out if there would be any tax hit at all on my wife's IRA if we converted it to a Roth. She has an Etrade account from a previous life that is only worth about 45% of the original pre-tax contributions.
The account is only worth a couple grand, so if there is a tax hit now, I don't know if it would make sense to convert now or not. However, I'd like to explore the Roth option for her and since she already has an Etrade account, it would be nice to be able to start with those funds and not have to deal with two accounts.
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A Mean Green Lifted 1972 C10 Long live the king! |
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02-11-2010, 12:56 PM
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canna change law physics
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Assuming that congress doesn't change the ROTH, or convert all IRAs to treasuries, then convert while the value is low is best, since you will be taking the tax hit on a lower value.
When the ROTH came out, it seemed like a really good idea. Now that I am a cynical older man, I expect that as a minimum the ROTHs will be means tested. "Rich" people will get the pleasure of paying capital gains on them. "Rich" will not be your definition...
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James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
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02-11-2010, 01:31 PM
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1970/1982 Porsche 914-6/911SC 2.7 RS
