Converting some IRA dollars to ROTH

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Converting some IRA dollars to ROTH

Postby ol_pops » Thu Feb 07, 2013 9:46 pm

The 2012 15% tax bracket is $70,700. I would like to convert some regular IRA dollars to ROTH but I have a question. Is that $70,700
my Adjusted Gross Income (AGI) or my Taxable Income?
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Re: Converting some IRA dollars to ROTH

Postby House Blend » Thu Feb 07, 2013 11:06 pm

Taxable income.

But it's too late for 2012. Any Roth conversion you do now goes on your 2013 tax return. (If you converted too much in 2012, putting you above $70,700, you could fix it now by recharacterizing the excess.)
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Re: Converting some IRA dollars to ROTH

Postby Alan S. » Thu Feb 07, 2013 11:09 pm

You also could have withdrawn funds from the TIRA in the last 3 weeks of December and could roll all or part of them over to a Roth IRA within 60 days. But almost nobody does that...
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Re: Converting some IRA dollars to ROTH

Postby Peter Foley » Fri Feb 08, 2013 4:32 pm

In 2013 the top of the 15% tax bracket is $72,500 (or $72,499 I'm not sure which) in taxable income. When tax brackets/tax rates are discussed the number is almost always taxable income.
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