Permalink Submitted by Alan Spross on Wed, 2010-02-17 20:19
Yes, but remember that all TIRA accounts must be considered in determining how much of that conversion will be taxable. If this is the first TIRA, then the conversion will be tax free.
Many who cannot deduct a TIRA contribution due to income NOR can make a regular Roth contribution are planning to do this two step process annually to accumulate Roth IRA assets.
Whether this obvious work around will be available for any length of time may depend on how many use it. If it gets too popular, it may lead to further tax law changes, perhaps removing the income limits for regular Roth contributions as well.
Permalink Submitted by Alan Spross on Wed, 2010-02-17 20:19
Yes, but remember that all TIRA accounts must be considered in determining how much of that conversion will be taxable. If this is the first TIRA, then the conversion will be tax free.
Many who cannot deduct a TIRA contribution due to income NOR can make a regular Roth contribution are planning to do this two step process annually to accumulate Roth IRA assets.
Whether this obvious work around will be available for any length of time may depend on how many use it. If it gets too popular, it may lead to further tax law changes, perhaps removing the income limits for regular Roth contributions as well.