Converting some IRA dollars to ROTH

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Converting some IRA dollars to ROTH

Postby ol_pops » Thu Feb 07, 2013 8:46 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?
User avatar
Posts: 306
Joined: Thu Mar 01, 2007 9:44 pm

Re: Converting some IRA dollars to ROTH

Postby House Blend » Thu Feb 07, 2013 10:06 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.)
User avatar
House Blend
Posts: 2718
Joined: Fri May 04, 2007 1:02 pm

Re: Converting some IRA dollars to ROTH

Postby Alan S. » Thu Feb 07, 2013 10:09 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You also could have withdrawn funds from the TIRA in the last 3 weeks of December and could roll all or part of them over to a Roth IRA within 60 days.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...
Alan S.
Posts: 4258
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Converting some IRA dollars to ROTH

Postby Peter Foley » Fri Feb 08, 2013 3:32 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.
User avatar
Peter Foley
Posts: 2575
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: amerk86, Baidu [Spider], Dancer, Farmergolf, MSNbot Media, sharif and 38 guests