Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-04-2015, 12:03 PM
Junior Member
 
Join Date: Apr 2015
Posts: 3
Roth IRA Converision

I am retired and have a traditional IRA. I opened a Roth IRA in 2015 and converted 40k from my traditional IRA to my new Roth IRA. Can I use any of that amount on my 2014 taxes?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-04-2015, 05:53 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
can you USE any of the amount on your 2014 taxes???? Whenever you convert from a pre-tax plan to a Roth-ira, which is after-tax, you must pay taxes on the conversion. Those who converted in 2010 got a one-time option to spread their conversion taxes over two years. For conversions in 2011 and later it reverts to the old rules, meaning you would pay taxes on a lump sum distribution from your ira. This could be a considerable amount for a retiree that could diminish the value of tax-free withdrawals or inheritance. In order to set up or contribute to any Roth ira, you must have earned income. As a retiree who does not have earned income, you are is free to convert assets in a pre-tax retirement plan like a traditional IRA to a Roth IRA, though it might not be the best move tax-wise. You should consult with a financial advisor to determine if such a move is right for you and your estate plan .



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-04-2015, 08:48 PM
Junior Member
 
Join Date: Apr 2015
Posts: 3
I'm sorry, I did not explain myself very well. I paid the tax when i did the conversion. I was wondering if i could treat that as a contribution to my roth if i did it before April 15th of this year. Maybe conversions and contributions are 2 different things as far as the roth is concerned. Tax laws are very confusing to say the least. Thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 04-05-2015, 01:30 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
Quote:
Originally Posted by grahac View Post
I'm sorry, I did not explain myself very well. I paid the tax when i did the conversion. I was wondering if i could treat that as a contribution to my roth if i did it before April 15th of this year. Maybe conversions and contributions are 2 different things as far as the roth is concerned. Tax laws are very confusing to say the least. Thank you.
You ARE converting your traditional IRA to a Roth IRA by either Rollover meaning you receive a distribution from a traditional IRA and contribute it to the R-IRA within 60 days after the distribution (in this case, the distribution check form IRA acct. is payable to you; by trustee-to-trustee transfer meaning You tell the financial institution holding your IRA assets to transfer an amount directly to the trustee of your R-IRA at a different financial institution , in this case,the distributing trustee may achieve this by issuing you a check payable to the new trustee;
OR If your traditional and R- IRAs are maintained at the same financial institution, you can tell the trustee to transfer an amount from your traditional IRA to your R- IRA.A conversion to the R-IRA results in taxation of any untaxed amounts in the traditional IRA by being reported on Form 8606. The shortest answer is , for any given year, the deadline for a R- IRA conversion is Dec. 31 of that year. This is different from IRA contributions, which can be made up until April 15 of the following year.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Roth IRA erfranco IRA/Sep 1 03-19-2014 10:34 AM
Sep/roth eacollie IRA/Sep 4 03-20-2013 09:52 PM
Roth IRA harryb IRA/Sep 1 02-06-2012 01:08 PM
roth IRA Bridgette419 IRA/Sep 1 03-04-2011 05:31 AM
Roth Ira kapriati IRA/Sep 1 01-21-2007 08:14 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning