Submitted by awful-human-being t3_zzn87e in personalfinance
Hi everyone. I now exceed the income limit to contribute to a Roth IRA. I have an existing Roth IRA with some invested funds in it (about two years of maximal contributions). I’m wondering if I could open up a traditional IRA and then rollover funds to my Roth IRA to avoid these income limits. I heard that the IRS treats IRA money as one bucket without discriminating pre and post tax money so I’m wondering if it’s even advantageous for me to roll money over from a traditional IRA, or if I’d be hit with more taxes?
BouncyEgg t1_j2cldhf wrote
You have a pre-existing Traditional IRA?
Or do you have a pre-existing Roth IRA?
It's the presence of a pre-existing Traditional IRA (sourced from deductible contributions) that presents an issue. Having a pre-existing Roth IRA doesn't matter.