I had a rollover IRA from my former employer that was converted from a 401k a few years ago, and it was just sitting there doing nothing. I am currently attempting to arrange my funds, but I am not sure how to proceed. I have made 7k in contributions to my Roth IRA so far this year. Would you please let me know whether I may convert a rollover IRA to a Roth IRA? I am not sure if that is doable. Would taxes need to be paid? Is it better to leave it as a rollover IRA or does it make sense to convert it in the first place?
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A conversion is possible. You will include the amount you convert in your taxable income for the year, so it may or may not be a wise decision, depending on the amount involved and your existing tax level.
Why not make an investment with the money while it is still in the rollover Ira even if you decide not to convert?
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Why is it doing nothing except sitting there? After you rolled it over, did you not invest the money?
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Indeed, they have invested in a money market fund. I received only 5% of the money back, which is fortunate because it is not a large sum.
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It is not necessary to convert it to merely stock purchases.