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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: LAL on June 27, 2016, 06:50:08 PM

Title: Roth IRA and Rollover IRA tax question
Post by: LAL on June 27, 2016, 06:50:08 PM

Does it make sense to pay taxes on money from a rollover ira to a roth IRA?  Does it make sense to rollover the amount to the top of the 25% tax bracket?  I'm not sure it makes sense at the next 28% bracket.

Also if we roll over all his old 401k $300k and only roll a portion into a Roth IRA but leave the rest, we can no longer do the Backdoor Roth IRA contributions correct?  We'll have the Non-Deductible account but the $5500 we roll over into the Roth IRA every year won't be 100% taxed because we have a non-taxed Rollover IRA.