Rolling retirement account into Roth IRA

[Anonymous]

Currently have $200k in a tax-deferred 403b and I’m considering rolling it into a Roth IRA. HHI after taxes will likely be around $190k. Is this a good or bad move?

[Anonymous]

This is OP. We don’t currently have any funds in traditional IRAs.

[Anonymous]

Ummm, likely not a good move. It'll all be considered taxable income this year. You're converting pre-tax to tax free.

[Anonymous]

Anonymous wrote:Ummm, likely not a good move. It'll all be considered taxable income this year. You're converting pre-tax to tax free.

+1. Can you do a mega Roth back door and a back door Roth?

[Anonymous]

Our HHI is ~150k and Im 99% sure I'm going to convert 90k in a rollover IRA into a Roth. Historically, 22/24% tax rate is low; I'm going back to work next year once my background check finishes so HHI will be higher; and we're expecting 2 pensions in retirement plus a large inheritance at some point. So I think this is a good time.

[Anonymous]

Where are you getting the money to pay the taxes?

[Anonymous]

Anonymous wrote:Our HHI is ~150k and Im 99% sure I'm going to convert 90k in a rollover IRA into a Roth. Historically, 22/24% tax rate is low; I'm going back to work next year once my background check finishes so HHI will be higher; and we're expecting 2 pensions in retirement plus a large inheritance at some point. So I think this is a good time.

Yes, if one spouse is currently out of the workforce then you should rollover before they re-enter the workforce.

Also, down markets are a good time to do a rollover. Sometime this year would be ideal.