Converting from a Traditional IRA to Roth IRA

Source: Vanguard

Converting to a Roth from Traditional
*Any money you want to convert from a traditional or rollover IRA into a Roth IRA does, in fact, count as income.

*If you want to transfer money currently in a Roth at one company and move it to a different company (but still as a Roth), that does not count as income. It’s just a transfer.

*You are able to convert from traditional to Roth a little at a time in order to avoid jumping into a higher tax bracket.

*Finally, starting in 2010, the income limits (currently, you cannot earn more than $110,000 for single; $160,000 married filing jointly) for the Roth will be waived.