All Forum Posts by: Mary Jay

thank you so much guys!!!

You guys are all amazing!
Thank you so, so , so much!!!!
I am so great full to receive the info from such great professionals!

My current custodian said they don't help with that.

So hopefully, somebody can recommend a company they used for conversion.

I guess, I wonder,  if taxing depends on the amount I am converting? 
For simplicity, lets pretend that I have no income from any sources...
Could the IRS then still tax the conversion because I am converting 400, 500, 600K?
Is there an amount that wont get taxed?

Quote from @Aaron Zimmerman:

It depends How much you have to convert over to a Roth and how much you expect your income to be. I would take a look at the tax brackets published by the irs each year to see. 

So if I have to convert 400K from Solo 401 to a Roth IRA and lets say I did not make any income at all at the year of conversion, then I should be able to convert that whole 400K tax free into a Roth, right?
Since I did not make any income...

Or what you are saying is, regardless of how much income I made, even if its zero income, the conversion is still will be taxed because 400K is  above a certain amount?

Thank you, guys so much!
You all know a lot!
Super grateful to have people like you on this forum!!! :-)

Hi guys,

So I have a solo 401K (One of my LLC's created a solo 401K)...

And I just lost my job.

So, since I am jobless, my tax bracket is probably close to zero, since I have no income from my W2 job and my rentals are mainly loosing money.

So I thought it would be a good idea to convert my solo 401K into a Roth, since I will pay no taxes on that conversion, since my tax bracket is close to  zero now.

Does the IRS calculate a tax bracket based on the income from the current year when the conversion happens? Or the use the income from the last year even though I am jobless now and  doing a conversion this year? 

Also, I have another job offer, and I am thinking of taking it. If I do a conversion from a solo 401K  to a Roth now, while I am jobless, but then start a new job (I would be working then 11 months out of 12 months in 2025...Since I am jobless for only a couple of weeks and will be starting a new job soon)... will the IRS still consider me being in a tax bracket based off on my income for 2025? Or will they allow me to do a conversion at a zero tax bracket, since I did that conversion from the solo 401K to a Roth while I had no job?

Also, does the IRS calculate the tax bracket based on the income from my W2 job, all LLC's ?

Or does the IRS calculate tax bracket only the LLC associated with that solo 401K?

Thank you so much! :-)

Quote from @Clayton Silva:

Not sure what you are asking, ROTH is just a tax designation of an IRA. Are you asking to convert a 529 to an IRA? Or to take an IRA into a self directed IRA?

I have an IRa (I think its called a self directed IRA), and I just lost my job.

So, since I am jobless, my tax bracket is probably close to zero.

So I thought it would be a good idea to convert my traditional IRA into a Roth, since I will pay no taxes on that conversion, since my tax bracket is zero now.

So I wanted to find out what companies did people try in the past?

What companies do u recommend for an IRA to a Roth conversion?

Would be good to use a company that people used before and had a good experience with...

Will u pls share?

thank you guys!