Traditional to Roth Conversions this week?

[cat4ever]

It is just mind-blowing to me that they consider those Roth conversions to be income... though I guess that one could argue that once it is in the Roth that if you're over 59 1/5 and eligible for penalty free withdrawals then the money can be used to make the loan payments just as if it were in your checking account... but the same argument could be made for money in the tIRA discounted for taxes.

I guess that these bankers never got the "money is fungible" memo since they insist on some sort of source of "income".

Exactly. it blows my mind that asset based mortgages are so difficult and don't get the same rates as income based mortgages. This is really just a way around their bureaucratic rules about required income, instead of fixing the basic problem in the first place.

 

[Gumby]

Ah, I see... but what if instead of dropping to $8k it goes up to $12k? It seems to be that both a drop or an increase are equally likely... not necessarly right now, but in general.

In any event, since I'm converting fixed then that isn't an issue for me.

My Roth conversions are same for same. I sell shares from one Vanguard fund in the tIRA and buy shares in the same Vanguard fund in the Roth.

 

[foxfirev5]

As usual I take a little different approach. Our Roths are about 92/8 AA. All conversions are to the settlement fund from cash in the tIRA. There is no need to market time. If stocks tank and I haven't made a conversion I simply invest to equities from the cash in the Roth. The 8% more than covers the expected conversion. I convert later in the year when the tax situation clears up.