rollover IRA into Roth

[MikeWaters]

my financial adviser dude told me I should take my last job's IRA and roll it over into a Roth. Since presumably this is the last year I can make a contribution to a Roth.

Of course I will take a tax hit by doing so. But he says overall this is the best move. We are talking about $14k (total IRA amount).

What do you guys think?

[jay santos]

my financial adviser dude told me I should take my last job's IRA and roll it over into a Roth. Since presumably this is the last year I can make a contribution to a Roth.

Of course I will take a tax hit by doing so. But he says overall this is the best move. We are talking about $14k (total IRA amount).

What do you guys think?

Do you mean roll a 401K to a Roth?

You have to look at your tax bracket now compared to what it will be when you retire. For me, with kids and a big mortgage, my tax bracket is low and with any luck when I retire it will be high. So for me, it would probably be right to move it to Roth.

[MikeWaters]

my income this year is significantly lower than it will be for the foreseeable future. I am getting a big raise next summer. That is why I won't be able to ever do something like this again.

[jay santos]

my income this year is significantly lower than it will be for the foreseeable future. I am getting a big raise next summer. That is why I won't be able to ever do something like this again.

I say do it now.

I love Uncle Sam right now.

My tax situation is such that 110K in total compensation is the breakoff of where I pay Fed Tax. Anything under that, and the gov pays me to go to work. Anything over that, and I pay tax.

[MikeWaters]

damn. how many kids do you have?

[jay santos]

damn. how many kids do you have?


Per child you get $3,350 in deduction and child tax credit covers $6,666 of income at lowest bracket.

Throw in a big mortgage, tithing ( on the gross :( ), a large 401K contribution, and health care premiums and FSA, and you cover a lot of income.

Current tax plan is a boon for Mormons.