To Convert or Not to Convert?
Traditional to Roth?
Today I have been spending a lot of time researching different investment accounts and what works best for me in my current tax bracket. As of now I have 1 traditional IRA, 1 simple IRA, and my wife has a traditional IRA rolled over from her old 401k. I think at this point in our life, and income bracket a ROTH IRA makes the most sense. Especially because of the aggressive nature of my investments the non taxed earnings on investments seems attractive.
1.) I need to see how close I am to the top of my tax bracket with my regular income and convert accordingly as not to push myself into a higher tax bracket. At this point it looks like I can convert about $10,000 before that additional "income" will push me over the threshold.
2.) I have some capital loss carryovers from my individual trading account that will allow me to reduce my income and convert a little bit more.
3.) I need to check into if the conversion money is treated as a contribution? This would allow me to withdraw that amount at any time, if I see alternative invests that I am unable to fund through an IRA.