How to do a partial conversion of an IRA to a Roth IRA
How do I do a partial IRA to Roth conversion with multiple Deductible and Non-deductible IRA's. I may make the maximum $100,000 Income requirment and will definately do this in 2010.
We have multiple IRA's at multiple brokerages some of which originated from pension conversions (which are sometimes called IRRA's). We also have multiple 401K and 403b's that are eligible to be converted to IRA's at any time. We have two non-deductible IRA's at one brokerage (one for my wife and one for me). My plan was to convert a portion of the IRA's in every year that we are eligible (to control the tax rate at 25%) but I am currently struggling with how to calculate the taxable amount since some of these IRA's have already had taxes paid on the principal. I am also a little confused because at will I can convert 401K's to IRA's which would seem to change the calculation. My long-time tax accountant was not helpful in answering this question which is one reason that I am using Turbo-tax this year (I like it). Will Turbo-tax help me with all these calculations and help me track the tax basis across these many accounts?
I have reviewed publication 590 and it does not seem to answer this partial conversion question. I am hoping to get an answer from the community and it is pretty clear that I will need to phone the IRS - I would just like to be as informed as a can for what I think will be difficult accounting, The answer I really want to hear from Turbotax is that they can track the cost basis (non-deductible contributions) as they are balanced across other accounts
(Asked 04/16/09, Views 11)