Today on Your Money, Your Wealth podcast number 366, does it make sense to use the money you would have contributed to a Roth IRA to pay the tax on a Roth conversion instead?

Does the IRS really penalize ineligible Roth contributions?

How will a mega backdoor Roth contribution be taxed? And will the step transaction doctrine apply our

family social security benefits affected if the spouse works plus eighteen

hundred dollars a month for life or twenty six hundred dollars a month for ten

years join big al spitball retirement pension options and they take your

comments visit your money your wealth.com to send your money questions and comments as an

email or as a priority voice message i'm producer andy last and here are the hosts of your money

your wealth joe anderson cfp and big out clobine cpa i think lee from jacksonville florida left us a message

hey and al quick question from jacksonville Florida, left us a message. Hey, Andy, Joe, and Al.

Quick question from Jacksonville, Florida.

We have a Roth IRA with 130,000, a traditional IRA with 120,000.

We are currently in the top, near the top of the 22% tax bracket.

We've been trying to convert IRA into traditional IRA pieces at a time about $20,000 a year.

But we're getting to the point where we're probably not going to get done by the time the tax hikes occur when they expire in 2026.

So our question is, instead of contributing the $12,000 a year to Roth IRAs, $6,000 into my wife's and $6,000 into mine, should we just

bite the bullet and convert as much as humanly possible into the Roth IRA from the traditional using the $12,000

for taxes that we would have contributed to the Roth. We could probably complete it in about two years,

except we would not be contributing to the Roth. We would have just rolled over everything from the traditional.

Really appreciate any spitballing you can give.

I am currently driving in my sobered Tacoma.

I'm not drinking because that would be bad.

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