Hey all. I was reading about these guys but I don't quite understand "why" they are.
I get that they let you get around contribution limits by converting a traditional IRA into a Roth.
But what I don't get - you have to already have the traditional IRA set up and funded, right? And both traditional IRAs and Roth IRAs come from the same $5500 yearly pot before penalties, right?
So, unless I am trying to roll something in for some reason, why is this useful? Just because you can reallocate from traditional to Roth in the future if you deem fit? Or is there some other purpose?
Or am I misunderstanding something?
Edit: Thanks so much for the responses guys, I think I misunderstood that traditional IRA's didn't have sunsetting between ~118k and 133k. I thought that happened with both traditional and roth.
Submitted June 12, 2018 at 08:53AM by truemeliorist https://ift.tt/2HH7TEo
