正文
In 2010, you can transfer traditional IRA to Roth IRA although your AGI more than $100,000. So some people make non-deductible traditional IRA contribution, and try to convert to Roth IRA in 2010.
But if there are more than $ 150,000 in your regular IRA account, it may cost you tens of thousand dollars or more. IRA tax rules are NOT simple and converting to Roth IRA may or may not be a good ieda for you.
Because no matter how many IRA account you have,401k, 403b, 457, rollover IRA, non-deductible or deductible, your conversion will be pro-rated of all of your IRA account..
For exemple, if you have $90,000 regular IRA and 10,000 non-deductible IRA, you convert $10,000 to Roth, 9000 will be taxable, 1000 will be non-taxable. Although you have $10,000 in your non-deductible IRA account, you can\'t treat that 10,000 conversion as all non-taxable unless that non-deductible IRA is the only IRA account you have. Calculate carefully before you make contribution and convert to Roth, don\'t trigger a tax penalty and create other unforeseen financial expenses.
But if there are more than $ 150,000 in your regular IRA account, it may cost you tens of thousand dollars or more. IRA tax rules are NOT simple and converting to Roth IRA may or may not be a good ieda for you.
Because no matter how many IRA account you have,401k, 403b, 457, rollover IRA, non-deductible or deductible, your conversion will be pro-rated of all of your IRA account..
For exemple, if you have $90,000 regular IRA and 10,000 non-deductible IRA, you convert $10,000 to Roth, 9000 will be taxable, 1000 will be non-taxable. Although you have $10,000 in your non-deductible IRA account, you can\'t treat that 10,000 conversion as all non-taxable unless that non-deductible IRA is the only IRA account you have. Calculate carefully before you make contribution and convert to Roth, don\'t trigger a tax penalty and create other unforeseen financial expenses.
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