2014 Traditional IRA Contribution

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natureexplorer
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2014 Traditional IRA Contribution

Post by natureexplorer » Thu Apr 02, 2015 9:29 pm

I'm considering making a deductible (tradional) IRA contribution of $5,500.00 for 2014.

1. Do I understand correctly, that I can still do this through April 15, 2015?

2. How long will it take for Fidelity to provide me with the necessary tax forms so that I can file my 2014 tax return correctly?

3. Can I make a rollover to a Roth IRA that is taxed in the 2015 tax year? My marginal tax bracket is 25% for 2014 but will likely be 15% for 2015.

4. Alternatively to Point 3, I might first rollover the IRA to a Solo 401k in order to have one account fewer. I would then Roth-convert an amount where I'm still in the 15% tax bracket.

5. Having said that, I may also look at more years down the road and consider whether to wait until I'm in the 10% tax bracket and and Roth-convert then.

6. Does municipal bond fund income increase your AGI?

jebmke
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Joined: Thu Apr 05, 2007 2:44 pm

Re: 2014 Traditional IRA Contribution

Post by jebmke » Thu Apr 02, 2015 11:32 pm

1. Yes you can still do it.
2. You don't need any forms to take the deduction.
3. Yes
6. No, but it can have other affects on your tax return.
When you discover that you are riding a dead horse, the best strategy is to dismount.

natureexplorer
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Location: Houston

Re: 2014 Traditional IRA Contribution

Post by natureexplorer » Thu Apr 02, 2015 11:45 pm

Thanks!

Any thoughts or comments on the other points?

JDDS
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Re: 2014 Traditional IRA Contribution

Post by JDDS » Fri Apr 03, 2015 8:31 am

Re: #4, if you move the IRA into a Solo 401(k), how are you going to convert to Roth? Are you planning to do that within the solo 401(k)?

natureexplorer
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Re: 2014 Traditional IRA Contribution

Post by natureexplorer » Fri Apr 03, 2015 9:20 am

JDDS wrote:Re: #4, if you move the IRA into a Solo 401(k), how are you going to convert to Roth? Are you planning to do that within the solo 401(k)?
I was thinking from Solo 401k to Roth IRA. Is that possible?

JDDS
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Re: 2014 Traditional IRA Contribution

Post by JDDS » Fri Apr 03, 2015 9:39 am

natureexplorer wrote:
JDDS wrote:Re: #4, if you move the IRA into a Solo 401(k), how are you going to convert to Roth? Are you planning to do that within the solo 401(k)?
I was thinking from Solo 401k to Roth IRA. Is that possible?


It's a bit complicated. Different types of contributions can be moved out of a 401(k) more easily than others. I do not understand all of the rules. When the plan is terminated you can move the money elsewhere. Absent termination you have to work with distributions allowed by law and by the plan. TFB's article may be helpful:

http://thefinancebuff.com/in-service-wi ... rules.html

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