{"id":139,"date":"2010-06-09T14:11:20","date_gmt":"2010-06-09T18:11:20","guid":{"rendered":"https:\/\/blog.bradpine.com\/?p=139"},"modified":"2014-02-12T10:50:15","modified_gmt":"2014-02-12T15:50:15","slug":"roth-ira-rollover-or-not","status":"publish","type":"post","link":"https:\/\/blog.bradpine.com\/2010\/06\/09\/roth-ira-rollover-or-not\/","title":{"rendered":"Roth IRA Rollover or Not?"},"content":{"rendered":"

\"RothA key component to successful investing is determining how to position assets for maximum return after taxes.\u00a0 It matters not what you make; it matters what you keep.\u00a0 Did you know that <\/span>as of January<\/span> 2010 you <\/span>are able to<\/span> convert<\/span><\/strong> your <\/span>Traditional IRA<\/span><\/em> to a <\/span>Roth IRA<\/span><\/em>, regardless of your income levels? <\/span>Roth IRA\u2019s<\/span><\/em> allow your retirement savings to grow <\/span>Tax-Free<\/span><\/span> instead of Tax-Deferred.
\n<\/span><\/p>\n

T<\/span>he <\/span>\u201c<\/span>Tax Increase Prevention and Reconciliation Act of 2005<\/span>\u201d (\u201cTIPRA\u201d), which <\/span>went into <\/span>effect <\/span>as of January <\/span>2010, <\/span>this <\/span>means <\/span>you may be able to convert some or all of your retirement accounts into a <\/span>Roth IRA<\/span><\/em>.\u00a0\u00a0 Prior to 2010, there were income limits restricting the possibility of conversions.
\n<\/span><\/p>\n

Money in a <\/span>Roth IRA<\/span><\/em> can grow and be distributed <\/span>Tax-Free<\/span><\/span> as long as distributions are not taken within 5 years of the conversion, and not before age 59 \u00bd .\u00a0 You also don\u2019t have to worry about taking <\/span>\u201c<\/span>Required Minimum Distributions<\/span>\u201d<\/span> (<\/span>\u201c<\/span>RMD<\/span>\u201d<\/span>) when you reach age 70 \u00bd as you do with a <\/span>Traditional IRA<\/span><\/em>.
\n<\/span><\/p>\n

When a <\/span>Traditional IRA<\/span><\/em> is converted to a <\/span>Roth IRA<\/span><\/em>, you will have to pay taxes on some or all of the converted amounts (i.e. contributions and earnings that haven\u2019t already been taxed)
\n<\/span><\/p>\n

The rules for conversion can be complex, and state and local income-tax rules for conversions may differ from federal rules.\u00a0 There are several variables involved when doing an analysis, and many <\/span>financial and analytical <\/span>tools and resources a<\/span>re required <\/span>in order to see if this opportunity would be beneficial to yo<\/span>u. <\/span>For more information about the different types of IRAs and Rollover <\/span>rules, visit<\/span> the IRS at <\/span>www.irs.gov<\/span><\/span><\/a> and search for the topic that interests you.
\n<\/span><\/p>\n

I strongly encourage you to speak with your local accountant or financial<\/span> advisor about these issues, as they are complicated and require a careful review<\/span> of your financial situation. While this strategy could make sense for many<\/span> people, you need to ask about your current and future tax projections, possible<\/span> tax law changes in the future, whether you expect to rely on social security,<\/span> your ability to stomach the prospect that years later your portfolio might go<\/span> down after you\u2019ve paid taxes on the savings, and your time-line for retirement.<\/span> There are many unknowns involved, so ultimately, the answer to whether you<\/span> should roll over into a Roth IRA<\/span> is both mathematical and political.
\n<\/span><\/p>\n

 <\/p>\n

Bradford Pine Wealth Group and Bradford Pine do<\/span> not provide legal or tax advice.<\/span>For legal or tax advice, please seek the services of a qualified professional.<\/span><\/p>\n

For more\u00a0detailed\u00a0information about rolling over your 401(k) or about managing your IRA, I highly suggest downloading my free eBook, \u201c10 Tips You Need to Know About Your IRA Rollover\u201d. <\/a>This short book is packed with critical information that will help you make the right decisions about your retirement savings.<\/p>\n

\u00a0<\/span><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

A key component to successful investing is determining how to position assets for maximum return after taxes.\u00a0 It matters not what you make; it matters what you keep.\u00a0 Did you know that as of January 2010 you are able to convert your Traditional IRA to a Roth IRA, regardless of your income levels? Roth IRA\u2019s […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[17],"tags":[11,1150,14,427,15,1098],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2p1nA-2f","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1986,"url":"https:\/\/blog.bradpine.com\/2012\/07\/30\/put-your-ira-in-good-order-to-avoid-the-crackdown-on-penalties\/","url_meta":{"origin":139,"position":0},"title":"Put Your IRA in Good Order to Avoid the crackdown on Penalties!","author":"Bradford Pine","date":"July 30, 2012","format":false,"excerpt":"Is your Traditional IRA or Roth IRA following all the rules? You may assume the answer is yes, but IRA mistakes are far more common than you may realize, and the IRS is gearing up to investigate and penalize them accordingly. \u00a0The Wall Street Journal reports that in 2006 and\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2012\/07\/When-they-come-for-you-300x223.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":154,"url":"https:\/\/blog.bradpine.com\/2010\/07\/07\/early-distributions-from-your-ira-rollover\/","url_meta":{"origin":139,"position":1},"title":"Possibilities and Pitfalls: Early Distributions From Your IRA Rollover","author":"Bradford Pine","date":"July 7, 2010","format":false,"excerpt":"Here at the Bradford Pine Wealth Group, we believe in educating and informing our clients. In addition to providing guidance on investment options and strategies, we feel it\u2019s important to include insight on the nuts and bolts of account management.\u00a0 One area that people generally don\u2019t know about is the\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2506,"url":"https:\/\/blog.bradpine.com\/2015\/07\/22\/sabotaging-your-retirement-download-my-free-ebook-10-tips-you-need-to-know-about-your-ira-rollover-2\/","url_meta":{"origin":139,"position":2},"title":"Sabotaging Your Retirement? ~ Download My Free eBook \u201c10 tips you need to know about your IRA rollover\u201d","author":"Bradford Pine","date":"July 22, 2015","format":false,"excerpt":"I\u2019ve written a free eBook called \u201c10 Tips You Need to know about your IRA Rollover,\u201d and if you\u2019ve ever wondered what to do with your retirement savings you might want to take a look! It\u2019s a comprehensive, plain-English guide that can help you to understand the options and take\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2015\/07\/ebook-Suit1-300x200.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":678,"url":"https:\/\/blog.bradpine.com\/2011\/03\/16\/theres-still-time-to-contribute-to-an-ira-for-2010\/","url_meta":{"origin":139,"position":3},"title":"There’s Still Time to Contribute to an IRA for 2010","author":"Bradford Pine","date":"March 16, 2011","format":false,"excerpt":"\ufeff There's still time to make a regular IRA contribution for 2010! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2010 ($6,000 if you were age 50 by December 31, 2010). Normally, your tax return must be filed by April 15.\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":93,"url":"https:\/\/blog.bradpine.com\/2010\/05\/10\/dusting-off-your-retirement-accounts\/","url_meta":{"origin":139,"position":4},"title":"Dusting Off Your Retirement Accounts","author":"Bradford Pine","date":"May 10, 2010","format":false,"excerpt":"Spring cleaning should apply not only to your house but to your retirement accounts. 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