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Should I use the back door Roth IRA conversion to convert my traditional IRA to a Roth IRA?

I have a traditional IRA valued at $40,000 that was established 10 years ago entirely from an employee stock ownership plan (ESOP) plan from a previous employer. There were no contributions by me. Should I use the back door Roth IRA conversion to convert it to a Roth IRA? I do not have any other existing IRAs, just a 401(k) plan from my current employer.

Financial Planning, 401(k), IRAs
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March 2019

This would depend upon your tax rate & other variables including your age, tax braket, plans for the future etc...  I cannot begin to give you solid advice before I asked a lot more questions.  Generally speaking, the younger you are & the lower tax rate you are in makes a Roth conversion more attractive.

Hope this helps and best of luck, Dan Stewart CFA®

March 2019
March 2019