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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.
What else can I help you with?
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.
Can you roll over a 401K into a Roth IRA?
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
Why do a backdoor Roth IRA?
A backdoor Roth IRA can be beneficial for high-income earners who are not eligible to contribute to a traditional Roth IRA due to income limits. By utilizing a backdoor Roth IRA, they can make nondeductible contributions to a traditional IRA and then convert it to a Roth IRA, allowing for tax-free growth and withdrawals in the future.
How do you figure the costs of converting traditional IRA to a Roth IRA?
IRA is Roth
Can you rollover a previous employer's 401K into a personal IRA?
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.
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.
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.
Can you roll over a 401K into a Roth IRA?
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
What are some FAQ about Roth IRA?
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?"
Why do a backdoor Roth IRA?
A backdoor Roth IRA can be beneficial for high-income earners who are not eligible to contribute to a traditional Roth IRA due to income limits. By utilizing a backdoor Roth IRA, they can make nondeductible contributions to a traditional IRA and then convert it to a Roth IRA, allowing for tax-free growth and withdrawals in the future.
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.
How do you figure the costs of converting traditional IRA to a Roth IRA?
IRA is Roth
When does it make sense to convert into Roth IRA your traditional IRA account?
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.
Who is eligible for Roth IRA Conversion 2010?
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.
How do I rollover an IRA to a Roth IRA?
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.
How do you convert an voluntary IRA to a roth IRA?
To convert a traditional IRA to a Roth IRA, you first need to open a Roth IRA account, if you don't already have one. Then, you can initiate the conversion by transferring the desired amount from your traditional IRA to the Roth IRA. Be aware that the converted amount will be subject to income tax in the year of the conversion, so it's important to consider the tax implications. Finally, complete any necessary paperwork and ensure the funds are moved correctly to finalize the conversion.
Can you rollover a previous employer's 401K into a personal IRA?
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.
