Depends mostly on whether your marginal tax rates will rise or fall. Starting with $1,000 untaxed money:
The Roth route: pay income tax on it at say 28%. The remaining $720 goes into the Roth. Say it doubles over X years to $1,440. You draw it out but do NOT pay tax on it. You get $1,440 after tax money.
The traditional IRA/401(k) route: do not pay tax on it; $1,000 goes into the traditional IRA/401(k). It doubles over the same X years to $2,000. You draw it out but you DO pay 28% tax on it. You get $1,440 after tax money.
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
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.
IRA is Roth
Absolutely. That's actually the most common type of rollover. The IRA would need to be a pretax IRA though. If you had thoughts of rolling it directly to a Roth IRA you would first have to roll it to a Traditional IRA then convert the Traditional to a Roth.
Is your question can you have both a ROTH and Traditional IRA? If so, yes you can.
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.
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
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.
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?"
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.
You cannot do this. You've already contributed post-tax dollars into the Roth IRA. You may go from Traditional to Roth though, where you would pay the tax due in the year you make the conversion.
IRA is Roth
The criteria for a Roth IRA conversion have changed and as of 2010 anyone can convert a traditional IRA into a Roth IRA. Whether it makes good sense for you to do so will depend upon your personal financial situation.
I have no idea how to rollover a traditional IRA to a Roth IRA. Your best is to talk to a financial adviser and see that they have to say. They should be able to help you.
Absolutely. That's actually the most common type of rollover. The IRA would need to be a pretax IRA though. If you had thoughts of rolling it directly to a Roth IRA you would first have to roll it to a Traditional IRA then convert the Traditional to a Roth.
The best time to convert Roth IRAs to normal IRAs is when you want to withdrawal funds from your retirement account early. Otherwise, it is better to keep money in the Roth IRA because the Roth IRA has better returns in interest than traditional IRAs.
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.