If I make a $5100 Traditional IRA contribution for 2018, I'll get a $200 Retirement Savings Contribution Credit. I'll contribute the other $1400 to my Roth IRA for 2018. If I convert Traditional IRA funds to Roth in 2019, would I have to repay the $200 credit or just pay the income tax on the funds being converted in 2019?
As long as my tax bracket stays the same between years (which I expect), it seems like I'd be $200 ahead by doing this. Are there rules or problems with this plan that I may not be aware of?
In case it makes a difference in the answer, I'm on SS but have other taxable income too. The Traditional IRA contrib first reduces my taxable SS and then also directly reduces my AGI, so the $5100 contrib reduces my taxable income by just over $10K.
