Should you make the conversion to a Roth IRA? The article examines the advantage of the conversion of a traditional individual retirement account (IRA) to a Roth IRA. It explains that the tax liability can be stretched over 2011 and 2012, even if there is a need to pay income tax on.....
Whether aconversion to a Roth IRAis good for youdepends on your financial profile. In general, if you meet the income restrictions and can afford to pay the taxes that would be due on the conversion—and your tax bracket during retirement will be higher than your tax bracket now—it makes...
Let me share why I never contributed to a Roth IRA but why you probably should. I fully admit that I was once an ardentopponent of the Roth IRAin the past. But as a middle-aged father of two young children, I've come around. Contributing to a Roth IRA is a great way to diversify...
Ultimately, you are going toconvert that $6k to your Roth IRA.And because the $6k is after-tax, and the Roth IRA is an after-tax account, there are no tax impacts of this conversion. Whenyou should convert is a matter of some debate.Some experts feel you need some delay—possibly yo...
1) Should I wait to take Social Security (should be close to the top amount) and just live off IRAs after savings run out? 2) Does it make financial sense to do a massive roll-over of the IRA to a Roth IRA and pay the taxes now when my income is low?...
4. A distribution from a Roth IRA or Roth 401(k) is federally tax free and penalty free, provided the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, qualified first-time home purchase, or death. 5. With respect to fed...
Contributions can be allocated across different kinds of IRAs.3For example, you could make additions to a tax-deductible, non-deductible, or Roth IRA in a given tax year, as long as the combined contributions do not exceed the limit. And unlike a Roth IRA, deductible and non-deductible IRA...
Consider a Roth Conversion If you’ve been putting all or most of your retirement savings into a tax-deferred traditional IRA or 401(k), converting all or a portion of those funds to a Roth IRA could help lower your future tax bills, Kearns shared. ...
Consider a Roth 401(k).TheRoth 401(k)can be a good alternative to the traditional 401(k), though your contributions will be made using after-tax money, meaning you won’t get a tax break today. Instead, your withdrawals in retirement will be tax-free, an attractive benefit. Plus, you...
I have a question about rolling over a Roth 401k. Sixty percent of my 401k is in Roth, post-tax money, and I also have an IRA with pre-tax money. When I retire in four years, I plan to do a Roth conversion ladder to get as much of my pre-tax money into post-tax money. I ...