Converting Roth 401(k) to Roth IRA?
08-23-2018, 02:49 AM
#11
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Here is another point that many people are not aware of. You can have your child as the beneficiary to your IRA , if they keep it in your name they will continue to earn tax free on the account. However, they will be required to take RMD based on their age. They could take it all out and pay the tax on it but it is worth more to leave it and just take the RMD. Check it out.
08-23-2018, 02:27 PM
#12
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Originally Posted by tacoma1946
Here is another point that many people are not aware of. You can have your child as the beneficiary to your IRA , if they keep it in your name they will continue to earn tax free on the account. However, they will be required to take RMD based on their age. They could take it all out and pay the tax on it but it is worth more to leave it and just take the RMD. Check it out.
08-27-2018, 07:09 AM
#13
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There are also an asset protection angle to consider. I believe 401k assets fall under ERISA while the IRA assets may be subject to state laws.
It’s probably worth your time to read more about this so you understand the potential ramifications.
It’s probably worth your time to read more about this so you understand the potential ramifications.
Last edited by ClimbClimbNow; 08-27-2018 at 07:22 AM.
01-15-2020, 04:46 AM
#14
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ROTH IRA Contribution Question
Not a conversion question but this was the closest related thread I could find.
Does military retirement pension and VA disability money count toward the income limits for contributing to a Roth IRA? I’m referring to the $206K limit (2020 for married filing jointly).
Does military retirement pension and VA disability money count toward the income limits for contributing to a Roth IRA? I’m referring to the $206K limit (2020 for married filing jointly).
01-15-2020, 05:02 AM
#15
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Originally Posted by DWC CAP10 USAF
Not a conversion question but this was the closest related thread I could find.
Does military retirement pension and VA disability money count toward the income limits for contributing to a Roth IRA? I’m referring to the $206K limit (2020 for married filing jointly).
Does military retirement pension and VA disability money count toward the income limits for contributing to a Roth IRA? I’m referring to the $206K limit (2020 for married filing jointly).
I'm sure you already know this, but if you're over the limit, you could just do the traditional back door method if you so choose. Just be mindful of the pro rata rule if you already have money in a traditional IRA.
01-15-2020, 05:38 AM
#16
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Originally Posted by crewdawg
The IRS income limit is based on your Modified adjusted Gross income (MAGI). From what I have read, your pension does count, but your VA disability money does not. Not 100% on this though.
I'm sure you already know this, but if you're over the limit, you could just do the traditional back door method if you so choose. Just be mindful of the pro rata rule if you already have money in a traditional IRA.
I'm sure you already know this, but if you're over the limit, you could just do the traditional back door method if you so choose. Just be mindful of the pro rata rule if you already have money in a traditional IRA.
Appreciate your reply.
01-15-2020, 06:17 AM
#17
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Originally Posted by crewdawg
I'm sure you already know this, but if you're over the limit, you could just do the traditional back door method if you so choose. Just be mindful of the pro rata rule if you already have money in a traditional IRA.
kinda figure taxes for most of us will jump after Jan 2021 so I'd rather pay 24% now than 50% later.
01-15-2020, 10:14 AM
#18
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Originally Posted by tacoma1946
Here is another point that many people are not aware of. You can have your child as the beneficiary to your IRA , if they keep it in your name they will continue to earn tax free on the account. However, they will be required to take RMD based on their age. They could take it all out and pay the tax on it but it is worth more to leave it and just take the RMD. Check it out.
Originally Posted by JamesBond
The RMD is based on YOUR age, not the beneficiaries' age
Originally Posted by ClimbClimbNow
There are also an asset protection angle to consider. I believe 401k assets fall under ERISA while the IRA assets may be subject to state laws.
It’s probably worth your time to read more about this so you understand the potential ramifications.
It’s probably worth your time to read more about this so you understand the potential ramifications.
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