Originally Posted by RonTrull
#1. Can I rollover money from a "traditional IRA" to a "Roth IRA" in a calendar tax year that I have zero earned wages?
#2. Can I do the above in April for the prior tax year?
#1; When you roll over an IRA to a Roth IRA, there’s no tax penalty. However, you may owe income taxes on some of the transferred funds if you took a tax deduction for the original traditional IRA contributions. If you haven't made nondeductible contributions to the traditional IRA, the entire amount of your conversion counts as taxable income . If you've made nondeductible contributions, you won't pay taxes on the part of the conversion that comes from nondeductible contributions because you've already paid taxes on that money. For example, if your traditional IRA's value is 30 percent nondeductible contributions, 30 percent of your conversion would be tax-free. To report the roll over, use IRS Form 5329. So, although having income in isn't a requirement for converting to a Roth IRA, you'll likely need some source of funds to pay the resulting taxes. When you convert from a traditional IRA to a Roth IRA, you must report the conversion on your income taxes even if you don't owe taxes as a result of the conversion
#2; There is no grace period for rollovers. You did it in 2014, it's 2014 income. Only new contributions can be applied to a previous year. Rollovers cannot