Will Trice <wwtrice[at]paragondynamics.com> wrote:

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Great

Thanks al!!

me[at]privacy.net wrote:
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Look at http://www.fairmark.com/refrence/index.htm to understand your
bracket. If you won't be claimed as someone else's dependent, you have
an exemption and standard deduction equal to $8750. This is an amount
you will pay zero taxes on. The next $7825 is taxed at 10%. So it
depends how low you mean. It's a good opportunity to convert to a Roth
as long as you pay the tax, if any, out of your other money, don't
liquidate an IRA money to pay the tax.
JOE

me[at]privacy.net wrote:

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No.

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Sure, there are income limits on rollovers, but not time limits.

-Will

"catalpa" <catalpa[at]entertab.org> wrote:

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Is there a time limit on converting from rollover IRA
to Roth tho?

Can I say leave it as a rollover IRA for maybe 6
months.... THEN xfer to a Roth?

joetaxpayer <joetaxpayer[at]nospam.com> wrote:

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I'm currently back I college and hope to be full time
next year

never went to college out of high school

Amt is abt 18k...should I dollar cost average into the
Roth?

My income will be LOW this year

On Feb 9, 8:15 am, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
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Good question JOE. Everyone touts diversification to remove non-
systematic investment risk, but tax risk is often overlooked. No
matter how confident we feel about our future (tax wise, in this case)
we simply cannot know what Congress will do (over 40 years in the OPs
case)! Look how much has happened just in the recent past. Roths have
only been around for a decade and IRAs didn't appear until the early
70's ('74, I believe).

Of course, if you are in a 0 - 15% tax bracket you almost have nowhere
to go but up. You never know though!

omehegan[at]gmail.com wrote:
snip
- quote -

Two points, when you leave a company (you imply you have frequent job
changes) it's probably good to move the money to your IRA, don't want a
half dozen 401(k)s left behind.

Why are you so sure you will be in a higher bracket at retirement?
Either way, being aware of your current bracket (certainly a known
figure, or knowable) and an idea of how your aiming toward retirement
can help guide your decisions. People with variable incomes have a great
opportunity to manipulate this way, converting at 15% in bad years,
building a retirement fund that may avoid taxes completely.

JOE

On Feb 8, 2:26 pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:

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Hmm, I didn't know you could convert them, and wouldn't have thought
it would be a good idea even if you could. Maybe I should consider
this...

I'm 26, and have a rollover IRA with money from a previous employer.
My current employer offers 401k but no matching. I'm about to open a
Roth IRA and begin contributing the maximum per year to that. Once
that's done, if I have anything left over, I'll put it in my company
401k. When I leave the company, I'll roll that into my existing
rollover IRA. Repeat for each successive company, unless they match,
in which case... you get the idea.

I guess the whole point of my focus on Roth IRA is the fact that I
know I'll be in a higher tax bracket when I retire, so it makes sense
to pay tax on the savings now at a lower rate, rather than defer it
and pay later at a higher one. So, by that logic, if I can convert my
rollover IRA to a Roth and pay tax on it now at that same rate, I
should. Interesting.

"PeterL" <po.ning[at]gmail.com> wrote in message
news:1170974652.734695.127130[at]s48g2000cws.googlegroups.com...
- quote -

Taxes are not instantly due on a ROTH conversion. Taxes are due for the year
of conversion, so quarterly estimated payments would be required for any
significant amount converted.

On Feb 8, 1:33 pm, m...[at]privacy.net wrote:
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Yes, with taxes due on conversion.

me[at]privacy.net wrote:

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Yes, you can, and probably should.
Do you think you'll get a new job this year? If the amount is large
enough, you may want to move it a portion at a time, or plan to
recharacterize back if your income is high this year.
The new tax laws added a provision allowing conversion from 401(k) to
Roth IRA with no stop in between, but no harm either way.
JOE

I was perm laid off from job Dec 2006. So I moved my
401K to a rollover IRA

Can I now convert it to a ROTH IRA?