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Keep Traditional IRA or covert to Roth???

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  • jfoxcpacfp
    replied
    As long as you’re earning at least the contribution amount, you can use the backdoor Roth, with our without a pre-tax TIRA in your name. The real question is whether you are willing to pay pro-rata taxes on the conversion. If you aren’t, you can:
    • Ask if your 403b accepts rollovers (most do). If so, roll your pre-tax TIRA into it
    • Convert to your Roth (don’t know the tax hit, hard to advise)
    • Convert 1/2 to Roth this year and 1/2 to Roth next year if it will keep you in a lower tax bracket.
      • If you choose to do this, simply wait until Jan 2022 to convert your non-deductible TIRA contribution.
    • Do some 1099 work on the side, set up a solo-k, and roll your pre-tax TIRA into it.
    Welcome to the forum!

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  • grecola331
    started a topic Keep Traditional IRA or covert to Roth???

    Keep Traditional IRA or covert to Roth???

    I’m wondering what I should do with my current IRA situation. I have a traditional IRA with a little under $14000 in it. I haven’t made a contribution in a while. I also have a Roth IRA through the same company with about $6800 that I haven’t been able to contribute to for a long while as my income is too high. Should I rollover the traditional IRA to the Roth so that I’m able to do backdoor Roth IRAs in the future? If so can I rollover the whole amount ($14000) and just take the tax hit or do I need to do only a certain amount at a time? OR should i just scrap the whole idea and just start contributing to the traditional IRA again??? I’m starting late obviously and by no means a financial person as you can likely tell. I do max out my 403(b) each year and I contribute monthly to a 529 fund for my daughter who’s 1.
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