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0
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1answer
32 views

Can I recharacterize my Roth since my income this year is foreign?

I moved abroad a couple years ago, but 2015 is the first year that I am claiming to be a bona fide foreign resident. I have been contributing to a Roth IRA for years. Filling out my return this year, ...
3
votes
2answers
65 views

Ordering of backdoor Roth conversion and rolling over 401k?

I have two retirement accounts: Traditional IRA funded with non-deductible contributions 401k I left my job so I want to roll over my 401k into a Rollover IRA, but I've also heard about the ...
1
vote
1answer
53 views

What do I do now if I contributed to Roth IRA in 2012-2013 and my MAGI exceeded the limit?

In 2013 I opened a Roth IRA for year 2012, contributing $4000 for year 2012. In 2014 I contributed $5500 to that same Roth IRA for year 2013. In 2015, I realized I was not eligible to contribute to ...
1
vote
1answer
67 views

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week?

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week? How does that affect my taxes? Do I get taxed on the earnings each weekly deposit ...
3
votes
1answer
51 views

Same day Roth IRA conversion but lost some money -> How do I list that on my taxes?

I contributed in March 2016 for my 2015 Traditional IRA and then a day later I converted that 2015 IRA into a backdoor 2015 Roth IRA but lost some money in the day I waited to convert. I'm about to do ...
1
vote
2answers
63 views

I just opened a non-deductible IRA, if I do a backdoor roth conversion this year, how do I contribute to the roth IRA next year?

I'm using betterment and I contributed $5500 to a 2015 Traditional IRA. This is the first time I opened an IRA. If I convert this 2015 contribution to a Roth IRA right now (because I can't contribute ...
6
votes
2answers
209 views

2014 Traditional IRA Contribution that was not Deducted

I contributed $5,500 to a traditional IRA during tax year 2014. My accountant did not take the traditional IRA deduction, apparently I was not eligible for it. My new accountant is telling me to ...
0
votes
1answer
31 views

Is there any reason not to combine my Roth conversion IRA with a Roth “non-conversion” IRA?

I have two smallish Roth IRA accounts that were established when I was much younger based on some summer jobs. One was initiated as a Roth from the start. The other was a traditional, which was ...
1
vote
1answer
75 views

Can you transfer a Roth IRA to someone else?

My friend's uncle manages a Roth IRA for him that is in my friend's name. He has had this account open since my friend was little (obviously before he was earning any income of his own). I don't know ...
0
votes
0answers
67 views

After-tax 401(k) conversion

I have some questions regarding converting my after-tax 401(k) to either my in-plan Roth 401(k) or an external Roth IRA: When I convert, can I transfer stocks/funds I own in my after-tax 401(k) ...
0
votes
2answers
60 views

Roth IRA recharacterization, earnings, and conversions

The way I see it, a Roth IRA has 3 implicit buckets of money withdrawn in this order (with the big "conversions" bucket actually being a large number of smaller buckets): Contributions Conversions (...
0
votes
1answer
145 views

How to file form 8606 when doing a recharacterization followed by conversion?

I made a $5500 contribution to my Roth IRA in 2015 (T1). Later I recharacterized this contribution. The market had gone down and I only got $5090 in my TIRA when the recharacterization happened (T2)....
0
votes
2answers
72 views

How long can I convert 401(k) to Roth 401(k)?

I understand that (simplified) 401(k) is pre-tax money, and Roth 401(k) is post-tax money. That means moving money from the former to the latter, I have to pay taxes on it, and those taxes might need ...
4
votes
1answer
87 views

Using a Roth conversion ladder in a 401(k) while also retaining backdoor Roth IRA conversions

Consider the following scenario: John Q. Public has a high enough MAGI that he is not eligible to make Roth IRA contributions (and hence also cannot deduct traditional IRA contributions). John also ...
10
votes
2answers
244 views

Deductions greater than Income : Traditional IRA to Roth Conversion?

Jurisdiction is US/Oregon I retired in 2014. In 2015 I am drawing on cash and investments held in a taxable account, and don't foresee needing to tap my IRAs for several years. Thus I am in the ...
3
votes
1answer
296 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with pre-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
2
votes
1answer
70 views

Backdoor Roth IRA Maneuver - Multiple T-IRA Accounts

The way I understand the pro-rata rule is that if you have $5K in T-IRA (deductible), open and contribute $5K to a new T-IRA (non-deductible), then decide to convert the latter $5K into Roth IRA, you ...
1
vote
1answer
98 views

Under federal rules, does a non-taxable IRA Roth Conversion impact school financial aid?

If you convert a traditional IRA to a Roth IRA and all the funds were deposited into the traditional IRA as non-deductible contributions, and there is no gain, and thus there is no income by the ...
5
votes
1answer
196 views

Should I convert from IRA to a Roth IRA based on an online calculator?

Several online conversion calculators pretty much give me the same or similar results if before and after retirement tax brackets are the same i.e. 25%. If my tax bracket drops to 15% after retirement ...
0
votes
1answer
41 views

Are year-end balances all that matter when it comes to Roth IRA conversions?

My wife is in the process of transferring a retirement account from her previous job into a Traditional IRA. Once it is transferred, I know any Roth IRA conversions would also take into account the ...
2
votes
1answer
57 views

Is there a limit to how often you can convert a Traditional IRA to a Roth IRA within a given time period?

Is there a limit to the number of times you can convert a Traditional IRA to a Roth IRA within a given time period? For example, if I convert my existing Traditional IRA to a Roth IRA now, and then ...
1
vote
0answers
58 views

Undo IRA conversion to an existing Roth IRA?

I have two retirement accounts at the same brokerage. One is a traditional IRA that was rolled over from a past company 401k plan, the second is a Roth IRA that I contribute to with taxable income. I ...
1
vote
2answers
61 views

Is this the right tax statement for Roth IRA back conversion?

I moved $5500 from traditional IRA to Roth IRA in January 2014 for tax year 2013 . Then I moved another $5500 from traditional to Roth IRA for tax year 2014 in March 2014. When depositing fund in IRA, ...
2
votes
2answers
101 views

Withrdraw funds that were converted from Traditional IRA to Roth IRA

From a previous employer, I had a traditional 401K which upon leaving that job I rolled into a traditional IRA. With a Roth IRA you can withdraw the "contributions" but not the gains. My question is,...
2
votes
3answers
229 views

Would it ever be a bad idea to convert a traditional IRA to a Roth IRA with the following assumptions?

Assuming: you had enough sitting around right now to pay the taxes you had at least 20 years until retirement you expect at least 7% per year return tax rate being the same as now (even though it ...
1
vote
1answer
64 views

Deductibility of traditional IRA contributions in same year as Roth conversion?

Is the deductibility of my traditional IRA contribution at jeopardy if within the same year I convert a portion of that same IRA to a Roth? Note; I am aware of the phaseout thresholds. Thanks, Jim
2
votes
3answers
351 views

Limitations of the 401(k) to Roth IRA conversion escape hatch

I'm currently planning on retiring before the 59 1/2 year old milestone where 401k's and IRA's become accessible penalty free. One workaround I've heard of to access your retirement funds early is to ...
1
vote
1answer
986 views

Are Roth IRA withdrawals within the same year as contributions tax free?

A couple of months ago, in this calendar year, I contributed $1,500 to my Roth IRA. I didn't invest it, so it still is worth only $1,500. I now need $1000 back, and so started to fill out a ...
-2
votes
1answer
731 views

Roth conversion: US tax brackets for Non-resident Aliens (residing in India)

Question 1: If I move money from a traditional to roth IRA (or pretax 401k to roth) account, what are the US tax brackets? Are there any standard deductions? Will I have to pay any taxes in India for ...
2
votes
1answer
938 views

Are distributions from Roth 401k or Roth IRA accounts taxed in India?

I am wondering if India distinguishes between pre-tax and roth IRA/401k accounts. So, if I am contributing to a roth account (401k and/or IRA) - would I have to pay taxes in India again: On the ...
2
votes
1answer
277 views

Do I include a spouse's Traditional IRA when converting my non-deductible Traditional IRA into a Roth IRA?

I have a Traditional IRA funded with non-deductible funds (in addition to a Roth IRA) and my spouse has a Traditional IRA funded 100% with deductible funds. I'm interested in converting 100% of my ...
0
votes
1answer
92 views

What is the “Taxable portion of a conversion” in a roth IRA?

From here, under "Treatment of Distributions". In particular, let's assume I have some funds in Traditional and Roth 401(k) and IRAs. Now, let's take a year when I make no income and I decide to ...
8
votes
2answers
2k views

The five-year rule and backdoor Roth IRA conversions with non-deductible contributions

I have a Roth IRA that was opened and initially funded more than five years ago. Now that I'm earning too much money to make regular contributions, I'd like to further fund this account through a ...
4
votes
1answer
1k views

Does converting IRA to Roth count toward contribution limit?

I have a small balance in a traditional IRA (as a result of company-match to Roth 401K contribution) and also a Roth IRA which is fully funded for the year. Can I pay the tax and convert my ...
7
votes
3answers
272 views

If I expect to have little earned income in a few years, should I prefer a traditional IRA to a Roth IRA now?

I'm currently in the 25% tax bracket, with a salary of $71K; I max out my contributions to a Roth IRA and contribute to a Roth 401(k) past my employer's match. I'm also planning to attend grad school ...
6
votes
2answers
587 views

What are the disadvantages of a backdoor versus conventional Roth IRA contribution?

My income is close to the Roth IRA limit. I like to do my IRA contributions early in the year, before I know exactly how much I will make due to bonuses and such. So I am thinking about doing a ...
2
votes
1answer
117 views

Can I convert a traditional IRA to ROTH pre April 2013 and have it matter for 2012

I believe there is opportunity to contribute to an IRA up to April 2013 and have it count on tax year 2012. It wasn't clear from this question, so I'd like to ask specifically if it is possible to ...
2
votes
1answer
370 views

Need help with completing a backdoor Roth IRA conversion

I am in need of some advice regarding IRA's, IRS income limits, IRA conversions, etc. Here's the points pertinent to my situation: My wife and I got married this year and will be filing 2012 tax ...
2
votes
1answer
145 views

Does a rollover IRA impact your basis for converting a traditional to Roth?

In the United States, does having a rollover IRA impact your basis for converting a traditional to Roth? I ask because I have a 401(k) with a former employer than I could rollover to an IRA and get ...
2
votes
2answers
161 views

How to allocate Roth conversion income across states when moved during year?

In 2010, I converted a traditional IRA to a Roth IRA while a California resident and elected to take the income half in 2011 and half in 2012. During 2011, I moved to North Carolina in the middle of ...
1
vote
3answers
132 views

Restrictions or impact on Roth IRA when reaching MAGI threshold?

If I started a Roth IRA in 2011, but start contributing to a Roth 401k and reach the MAGI threshold for additional contributions in 2012 to my Roth IRA, will I eventually be able to move my 401k Roth ...
2
votes
2answers
348 views

How do I recharacterize Traditional IRA contribution to Roth that was converted to Roth?

What forms do I fill out for my broker to recharacterize my 2010 Traditional IRA contribution that was in my traditional IRA that I completely converted to a Roth IRA in 2010 right after the above ...
5
votes
1answer
158 views

Avoiding ammending taxes for forthcoming 1099-R for 2011 when filing 2010 for IRA

I over contributed to my traditional IRA last year. This was then converted along with all my traditional IRAs into Roth IRAs in 2010. Then in 2011, I recharacterized the excess and earnings from Roth ...
2
votes
1answer
347 views

What do I do with excess contribution to traditional IRA that was converted to a Roth IRA?

I accidentally over contributed $25 to my traditional IRA last year giving a total non-deductible contribution of $5025. This was then converted along with all my traditional IRAs into Roth IRAs in ...