Roth Conversion
Terry, if my husband and I have already contributed the maximum amount to our Roth, can we still covert some of our IRAs to Roths without any penalty? Is there any limit, and Does it have to be done by Dec. 31? These conversions would be in our annuities, which are separate accounts from the other Roths.
Terry Says
I’m just about to post a column about Roth Conversions. You can contribute to a Roth and also do a Conversion in the same year. But a lot depends on how long you have held the existing Roth IRA.
As for converting annuities held inside a Roth IRA, you’d have to check with the annuity custodian to see if that is allowed.
Please read the column next week. It will send you to MaxifiPlanner.com, which can give you all the specific answers about the timing and impact of Roth Conversions.
