Income Tax on Roth IRA Rollover

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My company just closed its Pension Plan (employer contributions, so pre-tax I think), and I'm leaning toward rolling it into a new Roth IRA this year. Here's my basic status:
- 32 Years old, 10 yrs into my career
- Married, file jointly, wife doesn't earn much/anything
- I make roughly 65K/yr
- homeowner (5,000 or so deducted for interest/yr I think)
- Balance of around 16,000 in the closed Pension Plan awaiting my decision

My question is, should I take the tax hit on next year's return and roll the pension balance into a newly opened Roth IRA? If so, how much of a tax increase are we talking about? I assume I have to claim the entire balance as additional income.

Any suggestions? Is a Roth IRA the wrong call?

Thanks!!
 
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I thought this would be an easy one and get a quick reply...

I'm still kicking this around. I gathered some more info:
Total Deductions this year (should be similar next yr) = 27,500$
This kept me in the 15% Tax Bracket, for which the standard deduction was 16,500$

So, if my wife doesn't add much income this year and my deductions and pay stay the same (which they surely will)...the added 16,000$ in income claimed should NOT bump me up into the 25% bracket. I may be close, but shouldn't.

Therefore, I think rolling this dead pension into a new Roth IRA account while the balance is still low is a good idea. Earnings on this 16K will rack up and hopefully remain tax free when I withdraw upon retirement.

Somebody give me a blessing on this so I can sleep, eh??

Thanks!
 

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