Convert a traditional ira to roth
I am retired and only have social security as income, can I convert my traditional ira into my existing Roth IRA
Terry Says
Yes, but why would you?? Your withdrawals from a traditional IRA are taxed as ordinary income. I’m assuming that doesn’t raise your tax bracket every year, or impact your Medicare Part B premiums.
If you convert, you should have money OUTSIDE your IRA to use to pay the taxes. That big hunk of income in one year WILL likely raise your bracket and Medicare Part B premiums — and the impact will be felt two years from now, the way the calculations at SS work.
So unless you have a HUGE IRA and want to pay ALL the taxes in one year, with money held outside the account vs taking it out yearly with minimal tax impact, I’d suggest you leave things as they are! Please do ask your tax consultant if you have other tax issues triggering this suggestion.
