Re: Convert IRA into ROTH IRA?
You are correct in your thinking. The key is that you expect to be in a higher tax bracket upon withdrawal. A Roth isn't 'better' than pre-tax investment, for people who are underfunded for retirement they may be an unwise choice.
As far as taxes go, the Roth conversion will add the 4k to your taxable income in the year you do the conversion. So it will be taxed at your marginal tax rate. To do the conversion you must be otherwise eligible to contribute to the Roth.
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