Roth IRAs & Conversions
Found 27 Articles.
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What the OBBB Means for IRAs and IRA Conversions
The One Big Beautiful Bill Act (OBBB) didn’t directly change the rules on IRAs and IRA conversions. But many provisions have indirect and long-term effects that should influence your IRA planning. The tax brackets from the 2017 tax law were extended. The widely used phrase is that they were “made permanent.” But “permanent” in the […]
Key Facts to Know About IRA Conversions in 2025
Converting traditional IRAs and 401(k)s to Roth IRAs remains an attractive and powerful strategy for many taxpayers in 2025. The decision of whether to convert a retirement account requires careful analysis. Many people leave a lot of money on the table by not doing a conversion when it would be beneficial, doing a conversion when […]
Roth IRAs Are Compelling Estate Planning Tools
Roth IRAs can be powerful additions to your estate plan, regardless of your age. Most people focus only on lifetime income taxes when discussing roth iras. Roth IRAs can be powerful tools that help meet your Estate Planning goals, leaving your heirs with more after-tax wealth. An IRA will be included in your estate whether […]
Why This Could Be A Good Time To Convert Your IRA
You should regularly revisit the decision of whether or not to convert a traditional IRA to a Roth IRA, and recent events have made this an ideal time to re-evaluate the decision. A major reason people don’t convert their IRAs is the cost. The converted amount has to be included in gross income as though […]
When Converting to a Roth IRA Doesn’t Pay off
Near the end of the year is when many people consider converting traditional IRAs to Roth IRAs. Often in “Retirement Watch” and in my books, I explain when it is a good idea to convert your IRA. Since the advent of Roth IRAs, I’ve been at the forefront of determining when it makes sense to […]
The Most-Asked Roth IRA Question
This month we’re going to look at what lately has been the question I’m asked the most distribution from a Roth IRA isn’t tax free until at least five years have passed. Longtime readers know I believe rules of thumb and shortcuts are dangerous, and this is a good example. The summary stimulates a lot of […]
IRS Okays Backdoor Roth IRA
The Backdoor Roth IRA is a strategy available to someone who wants to contribute to a Roth IRA but whose income exceeds the contribution limit. The person can make a nondeductible contribution to a traditional IRA, and then convert that amount to a Roth IRA. There should be no income taxes on the conversion, if […]
More Scenarios When an IRA Conversion Makes Sense
Why bother with trusts when less than 1% of estates will pay estate or gift taxes? Many people are understandably, but mistakenly, thinking that way. Traditionally, tax savings were the primary reason to use trusts. But in 2018, individual estates worth up to $11.18 million are exempt from estate and gift taxes. Thanks to the […]
