How can I convert a regular IRA to a Roth IRA?

jillybeansisme answered 3 months ago …

If you convert from a traditional IRA to a ROTH you will have to pay taxes on the converted amount. I'm not sure if you can still pay those taxes over a 5 year period or not (that might have been a limited time frame that was given by the IRS).

You might want to consider just opening a second IRA and make that one a ROTH and contribute only to the ROTH for the future. Remember, if your employer offers a 401K and you are eligible to join it, even if you don't join the 401K your IRA contributions are limited.

If you contribute to a traditional IRA in addition to a 401K, the money you contribute is after-tax dollars and you have to keep track of it because that will be the first monies withdrawn (tax free for those monies). Any growth will be taxed.

It doesn't hurt to talk to your accountant or with the holder of the IRA account. They can direct you. I would definitely do a direct roll over if you decide to change from the traditional to the Roth (yes, you will have to open a new account). This way there will be no withholding that you then have to make up within 60 days.

While this is not a complete answer, I hope it helps.