I am laid off.. going to school... unenployment income this year will be $23,000.. no other income.. married.. 4 kids... because I will pay no fed taxs this year.. maybe it's a good year to roll over my $20,000 ira to rolfh... because I won't make enough money this year to pay fed taxs..? Or do I have to pay a minune tax of some kind because it's a reg ira... going to a rolfh ira?

You mean "convert" a Traditional IRA into a Roth IRA.

You're right that it's a good idea to convert during a year you have low income.

The amount of the conversion will be added to your income (i.e. it is taxable). When added to your unemployment income, it'll probably still be in a bracket where you will have to pay taxes on it, although probably at a lower rate than if you were working.

It is an absolutely GREAT idea, because it is likely you will have minimal (possibly ZERO) tax liability for the conversion, especially if your wife did not work.

It is an absolutely GREAT idea, because it is likely you will have minimal (possibly ZERO) tax liability for the conversion, especially if your wife did not work.

Thank you..

Glad to help!

Rolling over a traditional IRA to a Roth IRA makes good financial sense for many people. You could save a lot of money on taxes in the long run. However, you must be aware that there are restrictions and penalties that must be considered before making the decision to roll over a traditional IRA to a Roth IRA. Contributions to a traditional IRA are deductible for certain investors while contributions to a Roth IRA are not. However, distributions from a traditional IRA are taxed while Roth IRA distributions are not taxed. You must ask yourself if you would rather pay taxes now or when you retire.You need to realize that rolling over your traditional IRA to a Roth IRA requires that you pay taxes on all the gains made by your Traditional IRA. You are essentially cashing out your Traditional IRA and paying taxes then reinvesting the funds in a Roth IRA. The idea is to pay taxes now so you can avoid paying taxes when you retire. This makes sense for someone who has a long time until retirement or doesn't like the traditional IRA rules.You need to contact/call whomever holds your traditional IRA for accurate professional help and tell them you want to roll it into a Roth IRA. They can handle all the paperwork for you if you plan to keep the Roth IRA with them. If you are rolling it over to another company then you need to contact them as well.