Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.
These articles were prepared by Financial Visions and are used here by permission.
TOC
- Retirement
- IRA Conversions
- Retirement Basics
- Bridging the Gap
- Retirement Expenses
- Social Secutrity
- Retired – What Now?
- Early Retirement
- Consumer Debt
- Using Credit Wisely
- Structuring Your loan
- Mortgage Basics
- Getting a Mortgage
- Life After Debt
- Insurance
- Life Coverage Need
- Term Life Insurance
- Permanent Insurance
- Auto Insurance
- Health Insurance
- Homeowners Insurance
- Mortgage Insurance
- Finances
- College
- Investing
- Taxation
- Estate
- Business
Should I convert to a Roth IRA? | ||
|
The Roth IRA offers a number of advantages over its traditional counterpart. These include:
Details on eligibility to convert a traditional IRA to a Roth IRA.
Assets converted to a Roth IRA must remain in the account for at least five years before any distributions are taken. Otherwise, a significant tax penalty may apply. You’ll maximize the potential for tax-free income later if you pay conversion taxes out of pocket, rather than withdrawal them from your IRA. If you can’t pay conversion taxes without using part of your IRA funds, you probably shouldn’t convert unless you are certain you will be in a high tax bracket during retirement. Updated 3/24/2014 |