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To convert to Roth IRA or not ...?
Old 12-07-2010, 02:48 PM   #1
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Join Date: Jan 2008
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To convert to Roth IRA or not ...?

It's about $34k that was converted over from 2 previous employers in pre-tax accounts (combined into a single IRA).

I'm relatively young (46 ... almost 47), and I'm putting away in my "new" employer's 401K until the match (4%, which is what the employer matches up to dollar-for-dollar). We're also going to put aside another 2% into a Roth IRA for DW.
In any case, I was thinking of moving it this tax year because it can be split out as income for 2 years, and the conversion also doesn't have income limitations this year. We're most likely going to hit $120k or so this year due to overtime (regular income is about $105-$106k). Our normal Fed tax hit is only about 2.3%-2.5%/yr due to mortgage/property tax/child tax credit write-offs. And I'm not sure if the IRA contribution would be a problem due to the fact that we have medical insurance taken out pre-tax, to the tune of $8,200/yr (which brings us just under the $100k income limit for a Roth).

My thoughts were due to the desire to have some non-taxable accounts (Roth) and some taxable (401K), at retirement age. And of course in another year or 2, we may have too large an income to be eligible to put into the Roth.

Any thoughts or possible spreadsheets/calculators that anyone can suggest?
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