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What are the tax implication when converting a regular IRA to a Roth IRA?

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Answered 2009-02-09 15:44:55

Converting a traditional IRA to a Roth gives you that future tax-free benefit, but at an immediate tax cost. You'll have to pay taxes on contributions that you previously deducted, as well as on the account's earnings. For more details speak with your plan administrator.

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How do you figure the costs of converting traditional IRA to a Roth IRA?

IRA is Roth

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.

What is a roth conversion calculator?

A Roth conversion calculator is a program to help determine if a Roth IRA is right for you. In some cases you wil benefit by converting your traditional IRA to a Roth

What is the benefit of converting a traditional IRA to a ROTH IRA?

Here is a link to a website that will help you learn more about the benefits of converting, and if it is right for you or not.

How does one go about converting Ira to Roth?

You can perform traditional IRA to Roth IRA conversions using websites such as Fidelity and CalcXML. These websites offer calculators that you can use to make these conversions.

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.

Will a roth conversion calculator help me with my taxes?

It will help. Converting to a Roth IRA will cause the converted portion to be taxed, so converting at the right time is essential.

What are the tax consequences for converting a roth IRA into a self directed traditional IRA?

You would not want to do this in any way. The Roth would be taxed is as a distribution including penalties.

Where can I find a Roth IRA convertor?

There are many resources on the internet for converting your Roth IRA. A great site to reference is They have professionals who are able to help you with conversion.

Is converting a Roth to an IRA smart?

A Roth IRA is not tax delectable so getting a traditional IRA could save you money now. However, when you cash in then none of it will be taxed on the Roth but will on the Traditional so the Roth saves you money later. So it depends on when you need the money most.

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.

Where can I find information on finance and investing?

This website is excellent for finding information on Finance and Investing, and specifically on converting a Roth to an IRA:

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.

What is the difference between a Roth Ira and just an IRA?

Roth IRAs are similar to regular IRAs except for the fact that they allow you to forgoe a tax deduction. In order to qualify for a Roth IRA you must have documented form of compensation.

What is an IRA roth conversion?

Converting to an IRA Roth Conversion is based on the premise that taxes in retirement will go up, but what if taxes in retirement do not go up? Than an IRA roth conversions would not be beneficial, as it is meant to help people in retirement if taxes go up.

Should you convert your IRA to a Roth IRA?

People should only covert their existing IRA to a Roth IRA during certain circumstances. If, for example, a person has $150,000 with about 30 years to retirement, then the conversion would estimate that by the time that person retires, they would have accumulated about $300,000 more by converting to a Roth IRA than simply staying with their current IRA account. So use a simply conversion calculator to try and find if the cost would be higher after converting or not.

Can you have both a regular IRA and a roth IRA?

Provided you meet the compensation requirements and the income limitations for each type of IRA, you may contribute to both a Roth and a regular IRA. However, the combined amount may never exceed $5,000 (or $6,000 if you are 50 or older). Therefore, should a 45-year old be eligible and choose to contribute $3,500 to his Roth IRA, the most he could contribute to a regular IRA for the same tax year is $1,500.

Where can one find a calculator for converting to a Roth IRA?

Roth IRA calculations and conversions can be done online at calcxml, personal-vanguard, money.msn, money.cnn, forbes, fidelity, bankrate, rothira and schwab.

What's the difference between a Roth IRA and a Self-directed IRA?

In a Roth IRA you invest money that has already been taxed. Your withdrawals from a Roth IRA are tax-free. In a regular IRA you invest untaxed money. Your withdrawals from that account are taxed. Many IRA accounts have a custodian who oversees the investments and makes decisions about them. A Self-directed IRA allows an account owner to make investment choices on his or her own instead of needing the consent of an account custodian. Both the Roth IRA and regular IRA, as well as a number of other retirement accounts, can be used for a Self-directed IRA.

Can a simple IRA be transfered into a roth IRA?

Converting an IRA (traditional, rollover, SEP or SIMPLE[1]) or other eligible qualified retirement plan to a Roth IRA may be more attractive and accessible than ever before. As of January 1, 2010, all investors have an opportunity to convert their retirement assets to a Roth IRA as income restrictions are going away.

Which websites carry details on converting traditional IRA accounts to a Roth IRA account?

The IRS website ( gives a detailed account of Roth IRAs. This includes information on how conversion from a standard IRA words.

Where can one use Roth IRA calculators for free?

A Roth IRA calculator is used to calculate the total value of one's Roth IRA. Free Roth IRA calculators are offered by the websites Bankrate, Roth IRA, Money Chimp and Calculator Pro.

Can you get a tax deduction for Roth IRA contributions?

No, you do not get a tax deduction for Roth IRA contributions. You pay regular income tax on the amount your contribute to your Roth IRA. The tax benefit is that any income you generate with the account (interest, dividends, etc.) is not taxed when you withdraw the money.

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. is an excellent website for information.

What is IRA and Roth IRA?

An IRA is an individual retirement Account. A Roth IRA is just a type of IRA. Traditional is another kind.

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