Well, I am about to change employers very soon. My spouse and I have been unable to contribute to a ROTH for the last two years due to combined income restrictions. We have never done a ROTH conversion. My roll-over is at Vanguard and both current and new employer 401K plans are also there. Can anyone please advise me on my options?
-Both of us work and have 401k (me)/403B-
I have a sizable roll-over IRA from a previous employer (spouse does not)
1- Can my spouse open a traditional IRA, contribute after tax dollars, and then convert it to ROTH without IRS risk or penalties? If so, are there yearly contribution limitations?
2- I dont think I can do #1 above for myself without having to pay taxes on my pre-tax roll-over IRA dollars? I don't want to pay these taxes and the Vanguard conversion calculator results did not give me confidence here.....
3- Will my flexibility for ROTH conversions increase if I roll-into-my-401K all of my pre-tax IRA dollars?
4- BTW- I will have a fair amount of post tax cash once the company is bought because all my unvested stock will be immediately taxed & converted to cash according to my companies poison pill
I have always loved maxing our annual ROTH contributions. Conversions always seemed confusing due to fine print restrictions.....
Thanks if you comment!
Well my boys want me to use this dancing emoji now. Sooooo