clickboom LSU Fan Baton Rouge Member since Sep 2012 45 posts
Fidelity IRA and Roth IRA (Posted on 10/24/12 at 7:45 pm)
Been lurking the money board for a while and have a question for y'all. I had two 401ks that got rolled over. One went to a traditional IRA and the other to a Roth IRA I called fidelity at one point and they said to just keep both. What are y'all's opinions on that? TIA.
agdoctor LSU Fan Louisiana Member since Dec 2004 1462 posts
re: Fidelity IRA and Roth IRA (Posted on 10/24/12 at 8:05 pm to clickboom)
if you are under 40 and average income I would convert the traditional to a roth. Otherwise I would probably leave it alone.If you do convert remember you will owe the income taxes.
tigerrocket LSU Fan Member since Aug 2008 59 posts
re: Fidelity IRA and Roth IRA (Posted on 10/25/12 at 5:32 am to clickboom)
Run the conversion numbers so that you can make an informed decision regarding tax liability on conversion. Now is a good time to do this because you should know what your income will be for 2012. Keep in mind that you can convert some each year. ie: convert 1/2 before the end of the year and the other 1/2 in January to spread the tax over two years. (don't pay the tax out of the account)
