Reply to 1%ers: What are you doing with your $$ before Dec 31?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We're converting to Roth IRAs, adding $26k per child to 529 plans and probably selling off stocks with a lot if capital gains. Anyone else making money moves before the end of the year? [/quote]

How can you contribute to Roth if you are in the 1%? Even we were disqualified years ago.[/quote]

You can't [b]contribute [/b] to a Roth but if you have a traditional IRA you can [b]convert [/b] it to a Roth.

It's not that uncommon for upper income folk to contribute $5k to a nondeductible traditional IRA and then turn around shortly thereafter and convert it to a Roth (owing tax only on the value over $5k if any).

It's a loophole that presumably Congress will close at some point, but maybe not.[/quote]
Just to be clear, the tax is paid on the original $5k in your scenario.  There's no getting around the taxes due.  The issue for 1%ers is to make the conversion in 2012 and pay at a 35% rate versus 39.5% or higher in 2013. [/quote]

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