403(b) rollover to Roth? Should we do it?

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Thoughts? Is this a stupid idea?

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I think it sounds like a good idea. But might not waiting until next year make more sense? Surely your income will be even lower next year?

eta: make sure you know the income limits on these things. I am not sure how 403b to roth works income limit wise. But I do know Roth has income limits, I think its 183k.

quote:

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I think it sounds like a good idea. But might not waiting until next year make more sense? Surely your income will be even lower next year?

eta: make sure you know the income limits on these things. I am not sure how 403b to roth works income limit wise. But I do know Roth has income limits, I think its 183k.

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Problem is it has to be rolled over within 60 days (or something like that, its before the end of the year) or they cut us a check and withhold 20%.

Could we roll it to a traditional, and then convert the traditional to a Roth in the next tax year?

Read through this, it would help your decision. Regardless, step one is to move the assets into a traditional IRA first. If your wife already has a traditional IRA I would open a separate IRA to receive the funds to lessen any potential issues when converting, then close the IRA post conversion. I agree with others who said convert in 2016 if you choose to do so. At the end of the day, the future is unknowable, you may want to run numbers this year to see what impact it has on current year tax impact if converting some or all, instead of waiting for next year, and there is state income tax to consider as well if in a state with that.

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