Is it Too Late to convert to Roth for 2013?
I would like to convert my traditional IRA or part of it to a Roth. I know I can contribute to a 2013 IRA until April 15,2014. Can I use the same date for a conversion or did I have to do it by Dec.31,2013 to count for year 2013?
Also my husband is 65 and I am 57. We each have about $250,000.00 in traditional IRA’s. Is it better to convert mine and not his? And to convert over a few years due to the taxes? My husband collects social security so this would probably be taxed. Would it be better for him to stop collecting social security until he turns 70? We are in the 15% tax bracket but with conversions I understand this will make our tax rate go up. Or at our ages is it not worth it at all to convert?
Permalink Submitted by Alan - IRA critic on Sun, 2014-03-16 22:42
It is too late to convert for 2013, as the distribution to be converted must be taken out no later than 12/31/2013. It probably would not be beneficial to convert unless you will have other retirement income sources besides SS and these two IRAs, and then it may be beneficial to convert. Conversion taxes would be lower if your husband suspended his benefits and he cannot do that before he reaches 66, his normal retirement age. Either way, in most cases only an incremental amount should be converted each year, perhaps no more than to the top of the 15% tax bracket if SS is suspended.