Author Topic: Quick Question on Traditional to Roth Conversion  (Read 751 times)

Threshkin

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Quick Question on Traditional to Roth Conversion
« on: August 26, 2018, 09:08:37 PM »
What is the deadline for converting a Roth to Traditional Traditional to Roth IRA?

Is is Dec 31 or Tax day (Apr 15)?

I need to do a conversion to true up our income for the ACA subsidy.  We will be out of country over New Years and I do not want to be doing takes while on vacation if I don't have to!  I tried searching the interwebs and, while I found lots of information on how to convert I could not find the deadline.

Thanks!
« Last Edit: August 26, 2018, 10:24:23 PM by Threshkin »

jacoavluha

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Re: Quick Question on Traditional to Roth Conversion
« Reply #1 on: August 26, 2018, 09:13:28 PM »
convert Roth to traditional? Are you talking about a re-characterization?
or do you mean the other way around; convert traditional to Roth?

Threshkin

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Re: Quick Question on Traditional to Roth Conversion
« Reply #2 on: August 26, 2018, 10:11:19 PM »
convert Roth to traditional? Are you talking about a re-characterization?
or do you mean the other way around; convert traditional to Roth?

Sorry, re-characterization.  Traditional to Roth conversion. (dyslexia strikes again).  We are FIREd and have low earned income.  We need to do the re-characterization conversion to increase our AGI to hit our ACA subsidy income estimates.

Edit: I don't think re-characterization is the right term.  This is old money that was invested pre-tax.  I now want to move it to a post-tax Roth account.
« Last Edit: August 26, 2018, 10:23:18 PM by Threshkin »

MDM

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Re: Quick Question on Traditional to Roth Conversion
« Reply #3 on: August 26, 2018, 11:34:58 PM »
What is the deadline for converting a Roth to Traditional Traditional to Roth IRA?

Is is Dec 31 or Tax day (Apr 15)?
Conversions are taxed in the calendar year they occur, so Dec. 31.

Threshkin

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Re: Quick Question on Traditional to Roth Conversion
« Reply #4 on: August 28, 2018, 05:01:48 PM »
What is the deadline for converting a Roth to Traditional Traditional to Roth IRA?

Is is Dec 31 or Tax day (Apr 15)?
Conversions are taxed in the calendar year they occur, so Dec. 31.

Thanks MDM.  I was afraid of that.  We will be out of country in Dec so we will have to do some early calculations of our SE net income before we go.