Roth IRA conversion

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Roth IRA conversion Beliavsky 12-20-2009
Posted by Beliavsky on December 20, 2009, 7:57 pm My wife and I exceed the income limits to contribute to a Roth IRA or to get a tax deduction for a traditional IRA, but in the 2010 there are no income limits for converting a traditional IRA to a Roth IRA. She has $8K in a traditional IRA. Can we contribute $5K before year- end to a non-deductible traditional IRA for my wife and another $5K next year and then convert the total of $18K in the deductible and non- deductible traditional IRAs to a Roth IRA? We would owe income tax on the $8K converted from the existing traditional deductible IRA, but earnings on the $18K in the future would be tax-free. The 2010 laws for Roth IRA conversions are discussed at http://www.fairmark.com/rothira/eligible.htm . Similar Threads Posted Roth Conversion for Elderly? February 10, 2007, 4:51 pm 2010 Roth Conversion April 15, 2007, 9:08 am Tax on conversion of money market to Roth IRA? October 31, 2006, 3:49 pm Relgular to Roth IRA conversion questions November 27, 2007, 12:58 pm Excellent article on Roth conversion strategies July 22, 2007, 9:58 pm An argument for doing a Roth conversion, even in a high bracket February 1, 2010, 9:25 pm 401K Plan Conversion - What Should I Do? June 22, 2007, 4:17 pm roth ira April 30, 2008, 5:06 am roth ira November 20, 2008, 3:31 pm Tradtional IRA/SEP to Roth November 6, 2006, 5:14 pm