On Sun, Dec 7, 2008 at 11:35 AM, Mel Wolfson <mwolfso@optonline.net> wrote:
Yes that's correct. I forgot to mention the AGI limitation for conversions prior to 2010, $100,000. I should have told Robert to look for your post.
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Donna J. Perrone
Sent: Sunday, December 07, 2008 1:11 PM
Mel,Doing a conversion now, before 2010, you still have the AGI limitations to deal with. Also,if the Traditional IRA's have basis from non-deductible contributions, then the taxable portion would be only the earnings, correct?DonnaDonna J. Perrone, EAEast Haven, CT203-469-4939203-468-2038 faxIRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax advice contained herein, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Mel Wolfson
Sent: Saturday, December 06, 2008 11:08 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] Roll over questionConverting to a Roth in 2008 makes sense in that rates are lower now than they are likely to be in the future. Also, if the market recovers, the recouped loss will be never be taxed. In order to recognize the conversion for 2008, you would have to do it before the end of the year. It is only recharacterizations and new contributions that can be made before the due date of the return.
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Robert Lukey
Sent: Saturday, December 06, 2008 5:58 PM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Roll over question
Here's the whole thing:Quick question for you regarding Traditional vs. Roth IRA's.... My wife is 52 and I am 53. We had before the stock market crash approximately $125,000 of mutual funds in traditional IRA's which obviously are worth significantly less now. We expect future income tax rates to increase dramatically between now and the time we retire. Our business income is way down this year due to the rotten economy. Does it make any sense for us to convert our traditional IRA's to Roth IRA's given this scenario? Is it advantageous to pay income tax now for the benefit of not paying income taxes following our retirement? If this makes any kind of sense, does the roll over have to be done by 12/31/08 for the 2008 income tax return?On Sat, Dec 6, 2008 at 12:01 PM, Arnold M. Socol <waymeans@verizon.net> wrote:
Bob, give us more info when you have it.Sent: 12/06/2008 10:22 AMSubject: [taxchat] Roll over questionMy client has an IRA that has tanked badly. They want to know if they have to roll it over before 12/31/08 in order for it to be an 08 rollover. I've got limited knowledge here. Can they wait and do it before they file? I believe they have to roll over before 12/31/08 but can change their mind and revert back before filing.
--
Robert Lukey EA CPAArnie Socol
President
Ways & Means, Inc.
845-562-6070
--
--
Robert Lukey EA CPA
Unless expressly stated otherwise in this communication, this advice is not
intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties.
This electronic communication (including any attachments) may contain proprietary, confidential or privileged information. This communication is intended only for the use of indicated e-mail addresses. If you are not an intended recipient of this communication, please be advised that any disclosure, dissemination, distribution, copying, or other use of this communication or any attached document is strictly prohibited. If you have received this communication in error, please notify the sender immediately by reply e-mail and promptly destroy all electronic and printed copies of this communication and any attached documents
__._,_.___
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
__,_._,___