r/investing
Question on converting traditional IRA into Roth IRA?
Author asks if converting $70k traditional IRA to Roth IRA is worth it for compounding, given 22% tax bracket and missed 401k rollover.
My company was recently bought out and I missed the window to convert my 401k into the new employers 401k.
The money in my old 401k was then placed in a traditional IRA in an extremely conservative fund. About $70k.
I have a Roth IRA account through a separate vendor with about $30k in it.
I am wondering if it would be worth it to convert the $70k into my existing Roth IRA account so that I could take advantage of the compounding interest? Or should I keep it as a traditional IRA?
I am so furious that I can't just put it back into my new 401k. I really fucked up. Anyhow, I'm 31 years old. Married filing separately for reference. 22% federal tax bracket rate.
Appreciate any guidance.