<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Converting an Old IRA to a Roth

Converting an Old IRA to a Roth

March 25th, 2013 at 01:42 pm

I have an old stinky IRA --- It's terrible that I can't even remember but I think it was at one point a 401K at my very first job out of college??? Anyway, it has just been sitting there in some mutual funds at Fidelity for about forever. I was thinking over the weekend that I should convert it to a Roth. I know I'd have to pay income tax, but otherwise we make too much money to have Roth IRAs so I kind of zone out whenever I hear them mentioned.

If anybody knows of an article or two I could read I'd appreciate it. I'll probably go Googling today.

There is not much else going on. The furnace at my Mom's house quit working over the weekend and we currently have her at a hotel. She's had a lot of unexpected expenses this month, I'll probably have to give her some money.

Posted in Personal Finance, Retirement | 3 Comments »

3 Responses to “Converting an Old IRA to a Roth”

  1. creditcardfree Says:
    March 25th, 2013 at 03:08 pm 1364224104
    1364224104

    The amount that you convert to a Roth is taxable just the same as ordinary income. Once you convert, that money and it's earnings are tax free provided you meet the 5 year rule and are 59.5 years old. The beginning balance and any contributions you add can be withdrawn anytime without penalty. The earnings will have a penalty if you withdraw early.

    I'm sure you can simply convert with Fidelity and keep it invested in the same thing, or you can open a Roth elsewhere and have the sent directly to the new Roth (and this is preferred to withdrawing the money and having it sent to you directly.)

  2. Petunia 100 Says:
    March 25th, 2013 at 03:59 pm 1364227153
    1364227153

    "Old, stinky IRA"? Thanks for the giggle. Smile

  3. rob62521 Says:
    March 25th, 2013 at 09:38 pm 1364247539
    1364247539

    Old stinky IRA? Too funny...

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]