My spouse Helen, whom I’ve lured into blogging, has just posted about the opportunity for lesbian and gay stay-at-home parents to convert a traditional IRA to a Roth. Because Uncle Sam still doesn’t recognize a partner’s income when we file our federal taxes, most of us lesbian SAHM’s (and gay SAHD’s) end up in a very low tax bracket, so the income tax we’d pay on the transferred money is minimal.
Why might you want to transfer money from an IRA to a Roth? What if you’re staying home for a few years? And why are there still financial disadvantages for lesbian and gay SAHM’s/SAHD’s? Go read Helen’s post for the details.
Obviously, each person’s financial situation is different, so this isn’t for everyone, but it’s something to consider and discuss with your own financial advisor, if you have one.