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Rules for converting from traditional IRA to Roth IRA - I plan

on retiring in the new...
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!
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Answered in 5 minutes by:
9/9/2013
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified

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
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified
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Thank you for the accept and the excellent rating!

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Anne
Anne
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Category: Tax
Satisfied Customers: 2,439
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Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses

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