Consolidating roth iras

The downside is that you'll pay tax on the pretax money that you convert -- that is, on contributions to a traditional IRA on which you got a tax deduction and any investment earnings that followed.

It's like the old saying about having too many chefs in the kitchen.This is called your Required Minimum Distribution (RMD).For your very first RMD you have until April 1 of the calendar year following the year you turn 70½ to take the RMD.For each subsequent year, you'll need to take your annual RMD by December 31 of that year.But be aware that if you delay your initial RMD until April 1 of the year after you turn 70½, you will end up taking (and being taxed on) two RMDs that year.You may be able to deduct some or all of your contributions to your IRA.Amounts in your IRA, including earnings, generally are not taxed until distributed to you. However, any amounts remaining in your IRA upon your death can be paid to your beneficiary or beneficiaries.So there's virtually no reason ever to shift money from a Roth into a traditional retirement account.Yet you might want to consider switching money from a traditional IRA or 401(k) into a Roth -- but only under certain conditions.See Non-deductible Traditional IRA page for income limits based on your tax filing status.For married couples with a MAGI between 1,000 and 9,000 in tax year 2017, the contribution result in a situation where one member of the couple is eligible to make deductible IRA contributions (such as a non-working spouse, or a spouse working part time or as a consultant or at a company without a retirement plan) while the other member of the couple (the one working at a company with a retirement plan) is not eligible for deductible IRAs, but might still be eligible for Roth IRAs.

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