Author Topic: Roth conversion/contribution question  (Read 1640 times)

dude

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Roth conversion/contribution question
« on: April 18, 2018, 07:13:09 AM »
Okay you Roth experts out there, I Googled around a bit, but couldn't find anything on this: next year, I will retire, but will maintain a part-time hobby side gig, so I will be earning money and thus eligible to contribute to a Roth (and indeed, we should fall below the income threshold for direct contributions; the past few years, I've to do backdoor conversions because we exceeded the limits).

My question is this -- is there any reason I can't contribute directly to my Roth AND do Roth conversions from my 401k*?

* I'm actually in the Fed TSP, so I plan to do a partial rollover of funds to a tIRA, then do conversions from there.

radram

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Re: Roth conversion/contribution question
« Reply #1 on: April 18, 2018, 07:44:56 AM »
This site answers your question very well:
https://www.irahelp.com/slottreport/roth-conversions-and-contributions-creditor-protection-highlight-mailbag

As long as you meet income requirements (you have earned income... but not above a level), you can contribute.

Conversion does not impact those requirements.

You should be golden.

dude

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Re: Roth conversion/contribution question
« Reply #2 on: April 18, 2018, 08:26:01 AM »
Thanks, radram!

MDM

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Re: Roth conversion/contribution question
« Reply #3 on: April 18, 2018, 02:32:57 PM »
...will maintain a part-time hobby side gig, so I will be earning money and thus eligible to contribute to a Roth
Note that "hobby income" entered on Form 1040 line 21 is generally not eligible for Roth contribution.

Business income, entered on line 12 and subject to Self-Employment tax, is eligible.

dude

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Re: Roth conversion/contribution question
« Reply #4 on: April 19, 2018, 07:15:19 AM »
Let me re-phrase -- I'll be earning W-2 income doing something I love to do, i.e., monetizing a hobby. And at any rate, even if I weren't, pretty sure my still FT working spouse could make the contribution for me (though in truth, she wouldn't, it would be my money coming from pension+401k, but for tax purposes it would look like she was making the contributions).