In 2024, I converted $75,000 from my 457(b) to my Roth 457(b) resulting in $15,000 in federal income taxes as well as additional state income taxes. If I make an $8000 2024 contribution to my traditional IRA I can save $1825 in federal income taxes which would result in a refund vs. having to pay $1500 in additional federal income taxes. This would also reduce the amount we owe to the State of Minnesota.
Given I already did a Roth conversion does it make sense to now contribute to a tax deferred account after doing a Roth conversion in 2024? It seems counterintuitive to do this but getting a refund vs. paying more now is tempting. I would appreciate your thoughts. Thanks.
