Roth IRAs & Conversions
Found 27 Articles.
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Good News: IRS Says 2017 IRA Conversions Can Be Reversed
The IRS recently announced that the prohibition on recharacterizations of IRA conversions doesn’t apply to conversions made in 2017. Since the first days of Roth IRAs, taxpayers have been able to convert traditional IRAs into Roth IRAs by including the converted amount in gross income and paying the taxes. Taxpayers also have been able to […]
How Will Tax Reform Change Roth IRAs?
We haven’t seen details of a tax reform bill, but there are some persistent rumors. One proposal is to reduce the Stretch Roth IRA. The Stretch Roth IRA is a great estate planning tool. You convert a traditional IRA to a Roth IRA, paying income taxes now and leaving your beneficiaries a tax-free source of income. […]
Roth Conversions When Tax Reform Is in the Works
The potential for major tax reform or tax cuts makes it harder to decide this year whether to convert a traditional IRA to a Roth IRA. Congressional leaders and President Trump say they are determined to push through tax reform this year. We don’t know details yet, but it’s clear that individual income tax rates […]
Arranging Your Finances to Make an IRA Conversion Less Costly
Last month, we addressed the different factors to consider when evaluating whether it makes sense to convert a traditional IRA to a Roth IRA. While a Roth IRA has many benefits, there is a cost to the conversion. You have to include the converted amount in gross income as though it were distributed to you […]
Five Proven Ways to Reduce the Mortgage on your IRA
Most people who are busy accumulating large balances in their IRAs and 401(k)s forget that the IRS holds a mortgage on those accounts. You put pre-tax dollars in the accounts and let income and gains compound tax deferred. But that balance in the IRA is not all yours. The price for those tax breaks is […]
The New Roth 401(k): Who Benefits?
Should you start deferring money into a Roth 401(k) account instead of a traditional 401(k) plan? Many of you still do not have access to the Roth 401(k) plans that first became available this year. But a number of you do, and many more will next year as employers add them to their plans. The […]
How to Maximize the Benefits of a Roth IRA Conversion
Converting a regular IRA to a Roth IRA can be a shrewd financial move. See September’s visit for details. This month we’re going to discuss how to establish a plan that will multiply the benefits of a conversion. There are two key rules that can be used to develop the most effective Roth conversion plan. […]
When To Convert Traditional IRA to a Roth IRA
Converting a regular IRA into a Roth IRA has several advantages for seasoned citizens, and it can benefit their heirs. A recent law makes it easier for some seasoned citizens to convert their IRAs. This is a good time of year to consider converting your regular IRA into a Roth IRA. A conversion is allowed […]
