Spokane2303
Recycles dryer sheets
I plan to ER next year once I max out my 401K + match. Basically I'll be putting 100% of my income (minus SS/Medicare/Health Insurance) into my 401K and will max. out early Feb.
So I'll technically have no earned income from work in 2013 as it will all go into the tax deferred 401K..
I then plan on converting the maximum amount possible from my traditional IRA into a Roth IRA while staying within the 15% tax bracket.
The question I have and can't find an answer to is: Since the conversion of traditional IRA funds into Roth IRA funds is considered earned income, does this taxable "earned income" count as income that can then be the basis for my 2013 Roth IRA contribution?
So I'll technically have no earned income from work in 2013 as it will all go into the tax deferred 401K..
I then plan on converting the maximum amount possible from my traditional IRA into a Roth IRA while staying within the 15% tax bracket.
The question I have and can't find an answer to is: Since the conversion of traditional IRA funds into Roth IRA funds is considered earned income, does this taxable "earned income" count as income that can then be the basis for my 2013 Roth IRA contribution?