Converting money to Roth IRA has big tax implicationScott Hanson
So, when you roll over a traditional 401(k) to a Roth IRA, you’ll owe income taxes on that money in the year when you make the switch. The total amount transferred will be taxed at yourordinary incomerate, just like your salary.2Federaltax bracketsrange from 10% to 37% for 2024 ...
When you convert after-tax money to a Roth individual retirement account (Roth IRA), the principal is tax-free, but you must pay taxes on the earnings of that money. Before you convert to a Roth, calculate the tax liability. Make sure that you have enough funds on hand to pay any tax...
Financial advisor... R Knowles,S Veliotis - IRA Choices: To Convert or Not to Convert? 被引量: 1发表: 2010年 SPECIAL REPORT: Lower Taxes on Your RMDs Investments in traditional IRAs and 401(k) plans grow tax-deferred, but you must pay taxes when you take the money out. In addition...
It suggests that in order to get the maximum benefits from the Roth IRA, it is essential to convert the entire withdrawal from a traditional IRA, rather than using part of the money to pay the taxes.Wall Street Journal - Eastern Edition...