Well, it's a bit complicated and you may take a tax hit if you withdrawl your account completely. Are you close to retirement age? What tax bracket do you think you'll be at when you retire? You can read more about conversions here: http://www.rothirarules.net/ http://ww.rothirarules.net/roth-ira-tax.htm http://www.rothirarules.net/roth-ira-conversion.htm Good Luck
The main advantage of a Roth IRA over a traditional IRA is that you're not socked with withdrawal penalties under most circumstances. You can also transfer the earnings to a beneficiary if the account holder dies. One thing to note is that you DO pay tax on contributions to a Roth IRA, unlike a traditional IRA.
IRA is Roth
Is your question can you have both a ROTH and Traditional IRA? If so, yes you can.
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
No, unless it's a divorce or death issue.
The main advantage of a Roth IRA over a traditional IRA is that you're not socked with withdrawal penalties under most circumstances. You can also transfer the earnings to a beneficiary if the account holder dies. One thing to note is that you DO pay tax on contributions to a Roth IRA, unlike a traditional IRA.
IRA is Roth
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.
Rollover - A distribution from a traditional IRA can be contributed to a Roth IRA within 60 days after distribution. Trustee-to-trustee transfer - The financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA with another financial institution. Same trustee transfer - As with the trustee-to-trustee transfer, the financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA. In this case, things should be simpler because the transfer occurs within the same financial institution. Note...A conversion results in taxation of any untaxed amounts in the traditional IRA. I did this, and had to pay the taxes on the money, before it went into a roth. The IRS spread the tax payments over a 4 year period, and was sure to send me a reminder every year at tax time, to make sure I didn't forget!!
Is your question can you have both a ROTH and Traditional IRA? If so, yes you can.
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
People have many questions regarding Roth IRA's. Some typical frequently asked questions about Roth IRA's are "Are there any penalties for cashing out my IRA early?" and "can i convert my traditional IRA into a Roth IRA?"
No, unless it's a divorce or death issue.
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.
A Roth IRA calculator will allow you to compare a Roth IRA and a traditional IRA to help you best determine which option you need to be doing to meet your retirement needs.
ROTH IRA and Traditional IRA may differ in many ways. Few examples of their differences are: Roth IRA has no tax break for contributions; tax free earnings and withdrawal in retirement. While the Traditional IRA has tax deduction during contribution year; an ordinary income tax owned on withdrawals.
No, because the taxation on disbursement will be different.