Can a taxpayer mix conversion Roth IRA with regular Roth IRA contributions for investment purposes?
Yes, but most “forms” provided by in-vestment houses do not allow this kind of combination and the author believes it is not a good idea. The reason is that conversion Roth IRA is subject to potential additional penal-ties, and it is not wise to mix them. 4. Can a taxpayer convert part of his traditional IRA to a Roth IRA? Yes. Taxpayers can select an amount from a tradi-tional IRA to roll over and convert into a Roth IRA. It is best as stated above to keep the two separate, although they can be commingled for investment purposes. 5. Can a taxpayer roll over from a qualified plan directly to a Roth IRA? No. Taxpayers first must roll into a traditional IRA and then convert that traditional IRA to a Roth IRA. 6. Can a taxpayer convert her traditional IRA to a Roth IRA after 70-1/2? Yes, but one must be sure to take out the mini-mum distribution for the year first. Under the IRS Reform Act, the minimum distribution, does not add to one’s AGI upon the effective date. The required minimum d
Related Questions
- What types of income qualify as earned income for purposes of making regular contributions to a Traditional or Roth IRA?
- Can a taxpayer mix conversion Roth IRA with regular Roth IRA contributions for investment purposes?
- What’s the difference between a regular conversion and a sequentially injected propane conversion?
