Announcement

Collapse
No announcement yet.

401K conversion to ROTH

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 401K conversion to ROTH

    I'm transitioning into fellowship and getting into a lower tax bracket for 2022 ( but still most likely will be in the 22-24%). I was wondering if it makes sense to do a rollover IRA of my current 401k and then do a roth conversion since I will be on a lower tax bracket, or is it too much of a hassle. I'm currently more inclined just to move it to the new employer.
    I also considered a rollover IRA to have more options, but I guess that that would limit my ability to do backdoor Roth IRA in the future. Any suggestions? Thanks

  • #2
    I think I would wait until 2022 at which time you will have a better idea of both your income and current tax law regarding marginal rates, etc. For now leave in the 401k and do backdoor Roth for 2021.

    Comment


    • #3
      1. You can roll over directly to a Roth, fyi
      2. We need the amount you are talking about
      3. Having a pre-tax IRA does not limit your ability to do a BD Roth in the future but I would presume it w/b better to convert all in the lower tax bracket than to wait for the future.
      4. But we still don’t know how much $$ you are considering rolling over.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment

      Working...
      X