Do this before a Roth Conversion

Can you do a Roth conversion with stocks? In this video, I'm answering the question if you can do a Roth conversion with stocks or property. The example I'm going through is one with a Roth IRA excess contribution fix but the conversion back to the Roth IRA has investment positions already.

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Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.

TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™

twitter: @travissickle

Sickle Hunter Financial Advisors
1646 W Snow Avenue
Suite 144
Tampa, FL 33606

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Information in this video is for educational and entertainment purposes only.
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#travissickle

[alexdiallo]

Keep it up with the good work sir! Thank you.

[vin.handle]

Useful information. I did a large conversion from my traditional IRA in January. I then estimated my taxes for 2022 and decided to hold that estimated amount in a money market fund in the Roth to guard against a severe market decline. I then make quarterly payments to the IRS and the state from outside the Roth to the extent possible.

[TheVp]

Thanks a lot for taking your time to make a video about this for question.

One more clarification needed:

I never had a traditional IRA. After I learned that my income for 2022 is high, I then created Traditional IRA and then I did the recharacterization as you mentioned ( From Roth $1500 -> Traditional IRA $1438 (loss of 60ish)).

So pretty much I don't have any Pre-Tax money in Traditional, I actually have loss of $60ish which carried over from recharacterization so does this mean pro-rata rule wouldn't really apply to me right?

Also, let's say theoretically my $1500 were to turn into $2000 then I guess pro-rata would apply and I would be liable for paying taxes on $500 correct?

[agentsmith]

Hi, Travis! Im a little late. Question for you. Am I able to move stocks that I purchased in my 401k with pre tax and after dollars from my account over to my Roth IRA? If so, what’s the best method on doing so? Would their be any tax implications?

[JXZ-JAM]

Not sure I follow but this is my challenge/question.

I have some stocks I want to transfer into my Roth IRA. Some of that stock is with a brokerage account that I also have my Roth IRA with (TD Ameritrade). I also have some stock in Robin Hood.

As I think I understand it, I cannot transfer stock into a Roth IRA. I have to sell it, take capital gains tax, move the cash into the Roth and then rebuy the stock.

2 part question. Are you basically saying here I can rollover my stock into a Traditional IRA and then rollover the Traditional IRA into my Roth IRA? And secondly, how do I get my stock into my Roth IRA without selling my positions and paying taxes? Can it be done?

Edit/P.S.: this is particularly useful info right now because some specific stock I have has dropped in significant value and I know it will go back up and I'd like to get it in before it does go back so I can take advantage of yearly maximum contributions.

[SamweezyTehFoo]

Hi Travis, I need help finding out how much money I need to take out of my Roth IRA. I contributed $6, 000 into my Roth IRA for 2021 but it turns out I am past the income restriction so i am not allowed to contribute any. That money has already been invested so I’m not sure if I could simply take out $6, 000.

Also to further complicate things, now being aware of the income limit, I already made a back door Roth conversion for 2022. Can you please make a video explaining how to calculate the amount to remove when you make the mistake of contributing to a Roth when you are past the income limit? Thanks!