My husband and I at our income level are not able to contribute to ROTH IRA. If I understand correctly if you make more then 100k you can not even transfer from IRA to ROTH IRA until 2010 ( they singned some bill in august this year that will allow everybody to transfer in that year)
We are ~ 28% tax bracket.
I currently have old 401k that I am planning to transfer to IRA = 35k, and planning to put max in IRA for both of us from now on = 4000k per person per year.
Now the question :)
Would it be smart for us to transfer all our IRA to ROTH IRA in 2010. We would have to pay tax, how much tax would that be? What is taxable when you transfer? Considering that we are in 28% tax bracket now, and probably will be in much lower tax bracket when we retire, is it smart to pay tax on it now and transfer to ROTH iRA or is it smarter to just pay lower tax on regular IRA when we retire?
Please help, i am completely new to whole finance world, but i am trying to learn.
2007-01-19
01:45:51
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7 answers
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asked by
Aida L
1
in
Personal Finance