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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2396
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Rules for converting from traditional IRA to Roth IRA - I plan

This answer was rated:

Rules for converting from traditional IRA to Roth IRA - I plan on retiring in the new future and rolling over my 401k to IRA. I want to take advantage of my low income situation (after retirement) and convert a portion of my rollover IRA to Roth IRA each year, and pay low income tax rate on the converted amount. Then when I need to draw the money, I will not own anymore tax.

Questions regarding IRS:

1. Is my plan possible? Can I do Roth IRA conversion at any amount at anytime - knowing that converted amount is taxable?

2. I know I must have earned income to contribute to any IRA, but is earned income a requirement for conversion?

Thank you very much!

Anne :

Hi

Anne :

Thank you for your question

Anne :

Yes, you may convert your Roth IRA to a Traditional IRA.

Anne :

(that was the answer to question1)

Customer:

Hi Anne:

Customer:

My question was converting from traditional to Roth.

Anne :

question2-no, earned income is not a requirement for the conversion.

Anne :

Even though high income earners can convert to a Roth IRA they may not be able to contribute additional funds. Roth IRA eligibility rules are still in place.\

Anne :

Please see below for more in depth information:

Anne :

 


I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.


 

Customer:

Thanks for the info. But just to make sure, you answered the question 1: "Yes, you may convert your Roth IRA to a Traditional IRA."

Customer:

Did you mean convert from Traditional to Roth?

Customer:

OK, I see that you signed off, it is pretty late. If you can give me a brief answer tomorrow I'd appreciated. I am pretty sure you meant the other around, but just want to make sure. Thanks!

Anne and 2 other Tax Specialists are ready to help you
Thank you for the accept and the excellent rating!

Please feel free to ask for me by name by putting "for Anne" in the question line f I can help you in the future.