Converting non-deduction IRA
I made my contribution for my 2014 non- IRA already. Can I convert this to Roth IRA now or do I have to wait until 2015?
Thanks
Tin
I made my contribution for my 2014 non- IRA already. Can I convert this to Roth IRA now or do I have to wait until 2015?
Thanks
Tin
Permalink Submitted by Alan - IRA critic on Thu, 2014-03-13 00:02
You can convert anytime you wish. Remember that if you have any pre tax IRA accounts, your conversion will be mostly taxable. If this is your only traditional IRA and the contribution was not deductible, when you convert only gains on your contribution will be taxable. There is no waiting period required before converting.
Permalink Submitted by mk foss on Thu, 2014-03-13 01:12
I agree with Alan. When you convert early you have to be aware of subsequent events that will make the conversion taxable. For instance, I know an individual who converted to Roth in March and then later that year was laid off and rolled his 401k plan to an IRA in December. He wasn’t happy with all of the taxes on the conversion.