So if you do a Roth conversion in October of 2023, the earliest you could withdraw money would be January 1, 2028. And if you do more than one conversion—for example, if you convert three different amounts over three years—the five-year rule would apply to each one separately. How ...
Under new rules that took effect in 2010, you can convert a traditional IRA into a Roth IRA no matter what your income is. If the conversion turns out to have adverse tax consequences, you'll have plenty of time to reverse the whole transaction, but only
Elizabeth Thomas Dold
(k) plan assets from a Traditional account to a Roth account. There are generally tax consequences for the conversion since you are taking money that was contributed before taxes and converting it to an after-tax investment account. But there can be long-term benefits, depending on your ...
3. You can lighten the tax burden of a conversion. If you don’t have enough money to pay taxes on converting all your traditional IRA assets, or if doing so would push you into a higher tax bracket, you can consider converting just part of your assets. In addition, a special provisio...
Whether a conversion is right for you depends on the amount of time you plan to leave the assets invested, your estate planning strategies, the federal income tax bill that a conversion is likely to trigger, as well as other factors unique to you. ...
But in terms of doing a Roth IRA conversion now, I still can't succumb. It feels like one last trap the government is setting to get Americans to fork over even more money. Further, my tax bracket is too high. All of us have the ability to adjust our income, and therefore, our ta...
Albion Senior Wealth Advisor Michelle Buxton was a guest on Park City’s NPR radio affiliateKPCWdiscussing the role of tax deferred accounts (IRAs, Roth IRAs, 401Ks, 403Bs, etc) yesterday. With the IRS pushing back the tax deadline this year, investors have more time to contribute to their...
Another reason that a Roth conversion might make sense is that Roths, unlike traditional IRAs, are not subject torequired minimum distributions (RMDs)after you reach age 73 (starting in 2023) or 75 (starting in 2033). So, if you're fortunate enough not to need to take money from your Ro...
A Roth IRA conversion allows you to turn a traditional IRA or 401(k) plan account into a Roth. You'll have to pay income tax on the money you convert, but you'll be able to take tax-free withdrawals from the Roth account in the years to come. Roth IRA conversions make the most s...