Re: Converting Traditional IRA to Roth IRA
This is a traditional IRA where you did not deduct the original contribution? In other words, you have a basis of 50% of the IRA amount? In that case I would say convert. If you deducted the original contribution, so you have no tax basis, then you may still want to convert, but it is more of a toss-up. I would say if you have a lot more money in zero basis plans (like 401k), and relatively little in Roths, then I would convert just to balance it out. If you have a lot of money in Roths then I would leave it for the same reason. Last consideration is if your tax rate this year will be lower than you expect your retirement tax rate to be. In that case convert.