Roth Clarification

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Topic Author
HappyToBeHere
Posts: 8
Joined: Tue Feb 05, 2019 11:58 am

Roth Clarification

Post by HappyToBeHere » Thu Mar 07, 2019 3:56 pm

DH and I are both newly retired, and under 70.5 years of age. Only income from here on out is pension, SS, and investment withdrawals from our traditional IRAs.

I have Googled and read many pages of Roth rules, but can't get confirmation on this.
  • Can we still 'do' conversions from our IRAs to our Roth's as long as we're <70.5?

    Is there any limit to annual conversions? Or is the only limit how much tax $$$ we're willing to fork over to Uncle Sam on the IRA withdrawals?
Thanks in advance. Seriously, I really did try to find these answers. I hate asking stupid questions.

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CAsage
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Re: Roth Clarification

Post by CAsage » Thu Mar 07, 2019 4:03 pm

There are no stupid questions, only people unwilling to learn or ask. Yes, Roth Conversions are unlimited (and I do not think there is any age restriction, high or low on that). You can convert as much of your IRA to a Roth in each year as you wish, and owe taxes accordingly. Many people do this as much as possible while delaying SS, so a window of opportunity. Do a predicted tax return, and convert away! You can do it later as well (after 70.5) but must withdraw your RMD first (i.e conversion must be on top/over RMD).

I will also add, for some people, gifting funds to children/grandchildren to fund their Roth accounts might be a great way to pay if (way) forward.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

Topic Author
HappyToBeHere
Posts: 8
Joined: Tue Feb 05, 2019 11:58 am

Re: Roth Clarification

Post by HappyToBeHere » Thu Mar 07, 2019 4:27 pm

Thank you!

Do I have until 4/15/19 to do this for 2018? Or would doing in now be a 2019 event?

sailaway
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Joined: Fri May 12, 2017 1:11 pm

Re: Roth Clarification

Post by sailaway » Thu Mar 07, 2019 4:28 pm

HappyToBeHere wrote:
Thu Mar 07, 2019 4:27 pm
Thank you!

Do I have until 4/15/19 to do this for 2018? Or would doing in now be a 2019 event?
2019. Conversions can't be credited to a different year than they actually occur in.

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Wiggums
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Re: Roth Clarification

Post by Wiggums » Thu Mar 07, 2019 4:30 pm

HappyToBeHere wrote:
Thu Mar 07, 2019 4:27 pm
Thank you!

Do I have until 4/15/19 to do this for 2018? Or would doing in now be a 2019 event?
Until April 15 for 2018 contribution

mrc
Posts: 1399
Joined: Sun Jan 10, 2016 6:39 am

Re: Roth Clarification

Post by mrc » Thu Mar 07, 2019 4:46 pm

Wiggums wrote:
Thu Mar 07, 2019 4:30 pm
HappyToBeHere wrote:
Thu Mar 07, 2019 4:27 pm
Thank you!

Do I have until 4/15/19 to do this for 2018? Or would doing in now be a 2019 event?
Until April 15 for 2018 contribution
sailaway wrote:
Thu Mar 07, 2019 4:28 pm
HappyToBeHere wrote:
Thu Mar 07, 2019 4:27 pm
Thank you!

Do I have until 4/15/19 to do this for 2018? Or would doing in now be a 2019 event?
2019. Conversions can't be credited to a different year than they actually occur in.
You have until April of the next year for contributions, but not for conversions.
Macs are for those who don’t want to know why their computer works | Linux is for those who do | DOS is for those who want to know why their computer doesn’t work | Windows is for those who don’t

Topic Author
HappyToBeHere
Posts: 8
Joined: Tue Feb 05, 2019 11:58 am

Re: Roth Clarification

Post by HappyToBeHere » Thu Mar 07, 2019 4:49 pm

Thanks all!

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