Terry,

With your help 10 years ago, I was able to move $140,000 from a traditional IRA to a Roth IRA. The taxes were paid using an adoption tax credit. My wife and I adopted twins from Russia. 10 years later my AGI has grown above the savers and earned income tax credit range. I’m currently in my 50’s. Can I move $6,500 from the Roth IRA back to the Traditional IRA? I think this will reduce my AGI back to the savers and earned income tax credit range.

Terry Says:

Well, you’ve held your Roth long enough to move money out without penalty — BUT I highly suggest you DONT!   This money will continue to grow tax-free — and an be passed on to your children tax-free, and continue to grow. And there will be no required distributions from it.  This is a very valuable nest egg!

And I suppose you could use that money to make a deductible contribution to another IRA — IF you have earned income of at least that amount. But that’s really silly and counter-productive.

Pay the taxes on your income now.   Or open a deductible IRA or contribute to a 40l(k), or a health savings account,  to reduce your AGI!!

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