<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Roth Conversion

Roth Conversion

February 5th, 2010 at 08:35 pm

I converted two thirds of our Traditional IRA accounts to Roth IRA's today. It's a bit scary to pull the trigger, when you know it is a taxable event.

I'm have already looked into the tax consequences and they are quite favorable for us as most of our earned income will not be taxed this year due to the combat zone exclusion. Of course, we still have to pay taxes, but not much different than a normal year for us.

I will decide about the remainder of the IRA balances later.

Posted in Saving, Taxes | 4 Comments »

4 Responses to “Roth Conversion”

  1. fern Says:
    February 5th, 2010 at 08:51 pm 1265403087
    1265403087

    Sounds great!

  2. Broken Arrow Says:
    February 5th, 2010 at 09:20 pm 1265404852
    1265404852

    Good for you! In fact, the market stayed even lower for the most part. I think you did just dandy!

  3. creditcardfree Says:
    February 5th, 2010 at 10:31 pm 1265409113
    1265409113

    BA, it did work out. I'm happy to have nearly locked in yesterday's prices.

  4. In Debt Says:
    February 12th, 2010 at 09:03 pm 1266008632
    1266008632

    Great move!! It makes perfect sense when you are certain 2010 will be in a lower tax bracket than you'll likely find yourselves in retirement.

    I need to get my act together...and figure out how much of my Traditional IRA I can afford to convert (how much extra tax I can pay), get the new Roth account set up, and pray I pull the switch on a day that the market is down.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]