withdrawing Traditional IRA to do Conversion
I have a small Traditional IRA and will withdrawal it and close it. Since I am over 59 1/2, there is no penalty. Is it possible to do a Roth conversion from a non-deductible IRA next year (backdoor Roth), or is there a wait period after closing the Traditional IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2024-05-17 22:16
You could either withdraw the current IRA or convert it. Either will be taxable. If your 12/31/2024 IRA balance for all your non Roth IRAs is 0, you could make a 2024 ND contribution in early 2025 and convert it tax free. You could also make a 2025 ND contribution and also convert that contribution tax free.
Or you could go ahead and make your 2023 ND contribution now and convert the total non Roth IRA balance this year. The tax due will be the same as the above procedure.