@ApDu wrote:
Thank you to all responders. We are in our 40s. I have converted the money (less than $4k) in my ROTH to a Traditional IRA (already had an IRA account w/balance that I was not contributing to this year).
Now deciding on whether to put back into Roth or track basis. I appreciate your help.
The important point that both @fanfare and I have been making is that, if you want to convert your IRA funds to a Roth IRA, you have to convert the entire amount of all your IRAs (IRAs in your name, not your spouse--there is no such thing as a joint IRA).
If you convert a partial amount, you will then have a Roth account (good) but you will still have to track the basis in your existing IRA.
If you convert the entire IRA, then you have to pay tax (bad) but all your IRA assets are now Roth IRA, and that enables you to do the "backdoor" Roth IRA in every future year, even if you are maxed out on your 401(k) and barred from IRA or Roth IRA contributions by your income. It's the tax hit in the year of the conversion that is the sticking point.
