rollover IRA into Roth
 

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.

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.

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.