Tykimeister
Recycles dryer sheets
- Joined
- Aug 21, 2008
- Messages
- 98
I have been maxing my ROTH IRA since age 26 and I am 35 now. My AGI for 2021 is going to be fairly close to the AGI limit of $139,000 for a ROTH IRA contribution.
I changed employers in 2021 and I have a 401 (a) state pension benefit plan that has a balance of ~$40,000. I want to convert that account into a ROTH IRA (assuming that is possible) but I am not sure if doing so will impact my AGI for making my 2021 ROTH IRA contribution for 2021?
Will the $40,000 contribute to my AGI in 2021?
Also, will I have to pay taxes on the $40,000 at a higher rate since I make much more money now, compared to previous years of much less income?
I changed employers in 2021 and I have a 401 (a) state pension benefit plan that has a balance of ~$40,000. I want to convert that account into a ROTH IRA (assuming that is possible) but I am not sure if doing so will impact my AGI for making my 2021 ROTH IRA contribution for 2021?
Will the $40,000 contribute to my AGI in 2021?
Also, will I have to pay taxes on the $40,000 at a higher rate since I make much more money now, compared to previous years of much less income?