I have both traditional and Roth IRA's. I believe with itemized deductions, I will be under the the threshold for federal tax brackets where the rate jumps from 12% to 22%.
I would like to take advantage of the difference between my taxable income and that threshold, and try to convert an equal amount from my traditional to Roth IRA. Basically, I want to pay only 12% on that retirement money now instead of worrying about what the future taxes will be for my deferred (traditional) IRA.
What are the steps to do this to avoid an early withdrawal penalty? Do we have to open a roll-over IRA? (Is it even possible to take a portion and move into a rollover and then into a Roth)?
Please advise if and how to do this. I want to do this before the end of 2019.
Thanks.
