To Roth or not to Roth?

Columbia_Student
Sat, 12 Dec 2009 17:18:23 +0000

[Retirement Plans FAQs regarding IRAs](http://www.irs.gov/retirement/article/0,,id=111413,00.html)



How can an individual convert a traditional IRA to a Roth IRA?

A traditional IRA can be converted to a Roth IRA by:

Rollover - A distribution from a traditional IRA can be contributed to a Roth IRA within 60 days after distribution.

Trustee-to-trustee transfer - The financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA with another financial institution.

Same trustee transfer - As with the trustee-to-trustee transfer, the financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA. In this case, things should be simpler because the transfer occurs within the same financial institution.

A conversion results in taxation of any untaxed amounts in the traditional IRA. Also, the conversion is reported on Form 8606, Nondeductible IRAs.





There might be some tax. I wish there is an online calculator that also takes into account of pension and social security.