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Can you convert a regular IRA to a Roth IRA even if you earn over the Roth limits for contributing to it?
Wiki User
∙ 11y ago
Yes, you can do this under current IRS rules. The rules behind this are fairly complicated, but it's allowable (maybe the correct term is that it's not disallowed).
Wiki User
∙ 11y ago
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How to convert a traditional IRA to a Roth IRA taxes?
Fortunately, you can easily convert your traditional IRA to a Roth IRA during a given tax year. You can contact the company that operates your IRA and have them rollover the traditional IRA to the new Roth IRA.
What are the 2009 Roth IRA contribution limits?
The 2009 Roth IRA contribution limits for those eligible to contribute to one is $5000 for those under age 50 and $6000 for those aged 50 and over. The allowable contribution limit did not increase from 2008.
What kind of taxes are paid when you convert an IRA to a Roth IRA?
A Roth IRA will allow you to pay the taxes associated with it now instead of later. This is not the case with a traditional IRA, which lets you delay the payment of taxes until retirement.
Which software will allow converting IRA to Roth IRA?
Imagisoft advertise a piece of software that allows the user to convert between IRA and Roth IRA. This allows the user to be fully aware the changes in value and other such factors in the conversion process.
Can you deduct roth IRA contributions?
No, you can not deduct Roth IRA contributions. You pay regular income tax on the money you contribute to a Roth IRA. The tax advantage is that the taxes have already been paid with it is time to withdraw the money. Additionally, you pay no income tax on the increase in account value from interest, dividends, etc.
Can you still contribute after your Roth IRA Maturity Date?
There is no specific maturity date for a Roth IRA, as it is a retirement account that you can contribute to for as long as you have earned income. However, there are restrictions around the annual contribution limits and income limits for contributing to a Roth IRA.
How do I convert a regular IRA into a Roth IRA?
To convert a regular IRA into a Roth IRA you have to pay federal income taxes on any pre-tax contributions, as well as any growth in the investment's value. http://www.money-zine.com/Financial-Planning/Retirement/2010-Roth-IRA-Conversions/
Can you convert a simple IRA to a roth IRA?
Yes, you can roll a regular IRA into a Roth IRA. You pay income tax on the amount you withdraw from the regular IRA, but do not have to pay a penalty for early withdrawal if you roll the money directly into the Roth IRA.
How do I learn about a Roth Rollover?
A Rollerover is when you convert your regular IRA to a Roth. Smartmoney.com offers a wealth of information as well as a calculator to help you decide if this is the right move for you.
What are the income limitations for contributing to a Roth IRA?
10000
Where can one inquire about the Roth IRA income limits?
Information about Roth IRA income limits is available on a number of websites, some examples include Moneychimp, Wikipedia, and the Roth IRA website.
Can you rollover a Traditional IRA to a Roth IRA?
Roth IRA Conversion Taxes. When you convert from a Traditional IRA to a Roth IRA you pay income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income.
What is the penalty for contributing more than the maximum to a Roth IRA?
Contributing more than the maximum into a Roth IRA will result in a 6% excise tax. The 6% tax applies only to the amount which one has over contributed.
When you start a Roth IRA can you stop contributing at any point?
Yes, there is no mandatory contributions into a Roth. You could contribute once and never do it again.
Should I convert my IRA to a Roth IRA?
Opinions on changing your standard IRA investment to a Roth IRA vary on who you ask. www.smartmoney.com/.../should-i-convert-my-ira-to-a-roth-ira is an excellent website for information.
What is the maximum amount that a single person can contribute to Roth IRA for tax year 2007?
A taxpayer under the age of 50 can contribute to a Roth IRA the lesser of $4,000 for 2007 or the amount of earned income. If the taxpayer is 50 or older the max contribution is the lesser of $5,000 or the amount of earned income. There are other limiting factors to determine if you are eligible - see the IRS Publication 590. Note: as contributions to a Roth are after tax money, contributing to one does NOT lower your current tax bill. Contributing to a regular IRA will.
How do you convert to a Roth IRA?
You can convert to a Roth IRA when you transfer some or all of your existing balance to a Roth IRA. However, though it is regardless of income, some income-eligibility restrictions still apply to current year contributions.
