Hi all,
My wife's previous employer made contributions to a Cash Balance Plan on her behalf. She has I think $6,000 in there or so now...... can we convert this to a traditional IRA, then convert to that to a Roth? (We make too much money to CONTRIBUTE directly to a Roth, but can we just CONVERT the CBP directly to a Roth and then pay the associated taxes to skip a step in there?).
We have also done the same with some other small previous 403b money, etc we had from residency lying around. It is my understanding that these are considered Roth CONVERSIONS and not CONTRIBUTIONS, so therefore they do not apply to our yearly Roth contribution limit......so after all of our conversions are complete, we can still each contribute $5,500 directly to a Roth for 2016?
Thanks for your help in advance. Will be nice to get all of these accounts tidied up.
My wife's previous employer made contributions to a Cash Balance Plan on her behalf. She has I think $6,000 in there or so now...... can we convert this to a traditional IRA, then convert to that to a Roth? (We make too much money to CONTRIBUTE directly to a Roth, but can we just CONVERT the CBP directly to a Roth and then pay the associated taxes to skip a step in there?).
We have also done the same with some other small previous 403b money, etc we had from residency lying around. It is my understanding that these are considered Roth CONVERSIONS and not CONTRIBUTIONS, so therefore they do not apply to our yearly Roth contribution limit......so after all of our conversions are complete, we can still each contribute $5,500 directly to a Roth for 2016?
Thanks for your help in advance. Will be nice to get all of these accounts tidied up.
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