2008 Roth Conversion?

[Gearhead Jim]

Can one do a traditional-to-Roth IRA conversion for 2008 yet, or did that stop on 12-31-08?

 

[73ss454]

I think it's over as of 12/31, I did mine on the 29th of Dec.. This was the first time I've done a conversion and I did 20K to get my feet wet.

 

[Lsbcal]

We are doing one for 2009 right now. You can recharacterize a 2008 conversion but cannot do a conversion after 2008 ends. Reason we are doing it early is because with the market down, we are being optomistic that we are selling at a market low and rebuying in a tax free forever account. Time will tell.

BTW, if you have Vanguard funds this can be done with a phone call -- no paperwork (but does not apply if you are doing it in a VBS brokerage account).

 

[Gearhead Jim]

Thanks. Further research shows we had enough medical expenses in 2008 that we wouldn't want the additional "income" from a Roth conversion. Maybe in 2009...