Roth IRA before 4/15/10 for those not qualified

Sorry if you already know this... It is my first day at 投资理财.

If you don't qualify for a Roth IRA before and would like to have one now, you still have time to get one by using 2009's IRA contribution without paying conversion tax. Please follow steps below.

1. Get up to $5,000 ($6,000 if over age 50) cash.

2. Find a financial institution you like, open a non-deductible IRA account and fund it with the cash. Please use 2009 contribution. Of course, you can contribute 2010's which can be done by 4/15/2011.

3. Open a Roth IRA account and convert the above IRA to this Roth IRA account. You can do this step before the end of 2010 but you will need to pay taxes for any gains accured.

Some notes:
1. Please be careful If you already have a deductible IRA mixed with nondeductible IRA. You can not convert only nondeductible portion. Even you have separate accounts, you will need to pay taxes even if you only convert the nondeductible account which does not have any gains.

2. For those people who have 401k at work, you can do this too.

3. For those people who rolled over 401k to IRA, you would need to roll back to 401k. Otherwise, you need to pay taxed even you don't convert this IRA to Roth IRA.

所有跟帖： 

• thanks for sharing! 不明白，为啥一定要convert or roll over back? -美西游子- ♀ (151 bytes) () 04/08/2010 postreply 21:08:40

• convert or roll over back? -health&beauty- ♀ (970 bytes) () 04/08/2010 postreply 22:07:21

• what if I don't convert and I don't roll back either? -美西游子- ♀ (10 bytes) () 04/08/2010 postreply 22:18:13

• Then no tax -health&beauty- ♀ (0 bytes) () 04/08/2010 postreply 22:33:23

• WRONG! : 1. Direct contributions to a Roth IRA may be withdrawn -us7749- ♀ (748 bytes) () 04/09/2010 postreply 07:07:27

• "Direct contributions" is different from "distribution". -health&beauty- ♀ (185 bytes) () 04/09/2010 postreply 08:18:36

• 这个有点迷津, 请指点. -美西游子- ♀ (178 bytes) () 04/08/2010 postreply 21:26:43

• This is for paying less tax when converting to Roth -health&beauty- ♀ (893 bytes) () 04/08/2010 postreply 22:31:46

• 回复：Roth IRA before 4/15/10 for those not qualified -易木- ♂ (254 bytes) () 04/09/2010 postreply 09:12:53

• There are always loopholes somewhere, use them whenever you can. -health&beauty- ♀ (0 bytes) () 04/09/2010 postreply 11:16:09