Hi
I’m not really sure where else to ask this, so I’m sorry if this is the wrong subreddit. I have a traditional IRA with a $15k balance and I want to roll it over to a Roth IRA, and I also want to contribute the max that I can to my traditional IRA (and also roll it over to a Roth) before tax season.
I think I want to avoid paying taxes altogether but I’m not really sure what the implications of rolling over the entire amount will be.
I have $6,500 of non-deducted contributions in this account, and $4,400 in contributions that I’ve taken deductions against. The full $15k is invested in funds.
My questions:
– Do I have to liquidate my funds before doing the rollover? I use fidelity for all this
– If I want to not pay any taxes for this rollover, how do I do that? My understanding is that I should roll $8,500 into my 401k, then transfer the $6,500 into my Roth account. I would then deposit $7k into my now empty IRA account and then immediately roll it over to my Roth.
– If I were to pay taxes on the rollover, what would that look like? I’m considering rolling over the entire $15k and eating the taxes, but I don’t know what that means for my tax situation.
Thanks for reading this far, I’ve talked to a CFP and a CPA and neither have been able to directly answer these questions. Really looking for help