Maximum ROTH conversion and/or contribution

Dec 22, 2013 1 Replies

I have both a traditional IRA and a ROTH. I am 68 and still working.



I contribute the maximum to my ROTH each year. I was thinking that I should consider converting some of my IRA to the ROTH. When I start having to take my RMD in two years my income is going to go way up, pushing me into at least the next tax bracket. I thought I'd be better off paying some taxes on at least some of the IRA money now at the lower rate rather than waiting.



Question: If I contribute the max to my ROTH can I also convert some of my IRA?



Thanks


Unrelated. Conversions to Roth are allowed regardless of income or other deposits. The first year divisor is 27.4 (for a single) giving a 3.65% distribution the first year. Not a bad idea to use the conversion to top off your current bracket.

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