Conversion to Roth + marriage deadline?

#3 12-29-2003, 12:56 AM

Barry, Bruce, and D. Stussy -

A happy new tax year to you all.

And thank you all! The consensus is clear. We'll figure out
now what we want to do.

Garry

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#2 12-26-2003, 03:28 AM

Garry W wrote:

- quote -

> I have an end-of-year question I'm scratching my head over.
> My fiancee and I are planning to marry sometime in the new
> year. She's been interested for a while in converting her
> traditional IRA over to a Roth, but hasn't investigated and
> decided yet.
> Would there be any reason that she might want to hurry up
> and get a Roth conversion done before the end of this year,
> rather than leaving the question until the next tax year,
> when she'll have "married" status?

Yes.

- quote -

> (Info: she's in a $50K tax bracket. My income can vary
> between zero and more than $100K depending on my realized
> gains in a given year. I do not know how much she has in her
> IRA, but I think it's less than $100K. I have $30K in a
> traditional IRA of my own.)

There are AGI limits not only on contributions but on
conversions (a different set of limits).

I don't recall offhand what they are - everyone I know who
thought of this did the conversion in 1998 where the 4-year
spread was available.

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#1 12-26-2003, 02:50 AM

Garry W wrote:

- quote -

> I have an end-of-year question I'm scratching my head over.
> My fiancee and I are planning to marry sometime in the new
> year. She's been interested for a while in converting her
> traditional IRA over to a Roth, but hasn't investigated and
> decided yet.
> Would there be any reason that she might want to hurry up
> and get a Roth conversion done before the end of this year,
> rather than leaving the question until the next tax year,
> when she'll have "married" status?
> (Info: she's in a $50K tax bracket. My income can vary
> between zero and more than $100K depending on my realized
> gains in a given year. I do not know how much she has in her
> IRA, but I think it's less than $100K. I have $30K in a
> traditional IRA of my own.)

Yes, since depending on your income the two of you may be
over $100,000 once you are married, in which case she won't
be able to convert unless your combined income drops below
$100,000, or the marriage ends.

Bruce Steiner, attorney
NYC and Hackensack, NJ
also admitted in FL

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12-24-2003, 12:02 AM

"Garry W" <YahooMail[at]extremelyserious.org> wrote:

- quote -

> I have an end-of-year question I'm scratching my head over.
> My fiancee and I are planning to marry sometime in the new
> year. She's been interested for a while in converting her
> traditional IRA over to a Roth, but hasn't investigated and
> decided yet.
> Would there be any reason that she might want to hurry up
> and get a Roth conversion done before the end of this year,
> rather than leaving the question until the next tax year,
> when she'll have "married" status?
> (Info: she's in a $50K tax bracket. My income can vary
> between zero and more than $100K depending on my realized
> gains in a given year. I do not know how much she has in her
> IRA, but I think it's less than $100K. I have $30K in a
> traditional IRA of my own.)

If she waits until next year and your combined income is
over $100K, she will not be able to do a Roth conversion.
From what you say, she will be able to do one this year. IF
she wants to do the Roth conversion, keep that in mind.

Barry Picker, CPA/PFS, CFP

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#-1 12-22-2003, 10:41 PM

I have an end-of-year question I'm scratching my head over.
My fiancee and I are planning to marry sometime in the new
year. She's been interested for a while in converting her
traditional IRA over to a Roth, but hasn't investigated and
decided yet.

Would there be any reason that she might want to hurry up
and get a Roth conversion done before the end of this year,
rather than leaving the question until the next tax year,
when she'll have "married" status?

(Info: she's in a $50K tax bracket. My income can vary
between zero and more than $100K depending on my realized
gains in a given year. I do not know how much she has in her
IRA, but I think it's less than $100K. I have $30K in a
traditional IRA of my own.)

thanks for any help!
Garry

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