Roth Conversion
I have made the following for 2023
1. Roth Contribution $7,500 for myself
2. Roth Contribution $7,500 for my wife
3. I have about 22k in Self employment income. ( No other earned income)
4. I plan on making a $4,000 Sep Contribution.
5. I rolled over 60k from wife’s IRA to her Roth
6 I am planning on doing a Roth Conversion from my IRA to my Roth for $4000
This basically offsetts the Sep contribution taxwise. I get a deduction on the SEP but pay on the conversion. I end up in the same place for the combined SEP (+$4,000) and IRA (-$4,000) which nets to zero and I now have $4000 more in my Roth.
Do you see any issue with doing the Roth Conversion for $4,000
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2023-12-15 00:06
No problem with the 4k conversion, but net SE income is just enough for the Roth contributions. Remember to deduct 50% of your SE tax from the net profit and the 4k SEP contribution when determining your max Roth contributions.
Permalink Submitted by John Ray on Mon, 2023-12-18 16:10
It is great to be able to double check with an expert!