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Roth Contribution versus Conversion ?
Old 09-21-2018, 05:05 AM   #1
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Roth Contribution versus Conversion ?

In 2019 - I will be earning a negligible $6,000 in side hustle income. I was debating weather it would be more beneficial to contribute the $6,000 to my Roth OR convert 24k from my IRA to my Roth? I'm currently living off my taxable accounts and am going to start receiving a State Pension (that covers all fixed expenses) beginning Jan 1, 2021. I do not need the income for ACA purposes.

My concerns stem from having a rather large IRA - and having a monthly pension begin in two years.

My initial thought was doing some annual conversions, but since I found an enjoyable side hustle, it seems to make sense to contribute this to my Roth.

Any ideas on this?



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Old 09-21-2018, 05:10 AM   #2
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All things being equal, if I were in your shoes I would do both.

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Old 09-21-2018, 05:26 AM   #3
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+1. I would contribute to a Roth any year I could. You can always withdraw the contributions penalty and tax free, so there's no risk there. So I don't see how that affects Roth conversions up to your optimal income point for taxes unless you simply wouldn't have enough money to pay the taxes this year.
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