rpodiak
Dec 22 1999, 11:30 PM
I have contributed $2000 this year to my traditional IRA. I would like to convert this year's contributions to a Roth IRA but am unclear on the law. My income is greater than $100,000 meaning I am ineligible to convert previous years' contributions, but is less than $150,000 meaning I am eligible to contribute to a Roth IRA.
Is it possible to convert these 1999 contributions with my income status?
BPickerCPA
Dec 23 1999, 12:37 AM
You cannot do a conversion if your income is over $100K. However, you don't want to do a conversion, what you want to do is a RECHARACTERIZATION of your contribution so that it is as if you contributed it directly to a Roth IRA. You can do this if you are eligible to make a Roth conversion. If you file a joint return and have income under $150K, you are. Get your custodian to do the recharacterization. However don't be surprised if they are unfamiliar with this.