IRAs – both Roth IRAs and more traditional types Rollover IRA – are designed to allow you to accumulate money for your retirement years. The structure of these IRA accounts has two consequences – first, that taking money out of your account before the IRS established minimum retirement age may subject you to penalties. The second consequence is that once you reach “retirement” age as defined by the IRS, you may be required to start receiving money from your rollover IRA account – whether or not you actually need it. Before you make any withdrawals from your IRA, it’s a good idea to consult your tax adviser or financial planner for advice. (more…)
Posts Tagged ‘Traditional IRA’
Rollover IRA/Roth IRA Limits – Do You Qualify?
Posted by admin on May 4th, 2010
If you’re considering to rollover your Traditional IRA account into a Roth IRA account, you may be wondering whether or not you even qualify to make this type of rollover. Historically, there were only two Roth IRA qualifications that you needed to meet before making this rollover. The first qualification was that you had to be able to pay taxes on the money you were rolling over, and the second was that your household adjusted gross income couldn’t exceed $167,000 dollars a year. (more…)
Setting up a Rollover IRA / Roth IRA Conversion Account
Posted by admin on April 3rd, 2010
New legislation taking effect in 2010 will leave many investors wondering if they should switch from a traditional IRA to a Roth IRA. A Roth IRA is different from a traditional IRA in that it is funded with after tax dollars. This gives rise to a number of considerations when setting up a Roth IRA conversion account. In many cases, these considerations can be complex and are best made with the help of an investment counselor or tax adviser. (more…)
Rollover IRA / Roth IRA Tax Rules
Posted by admin on March 31st, 2010
When it comes to Roth IRAs, the most important thing you must remember is that Roth IRAs are not structured like traditional IRAs. Traditional IRAs allow you to make contributions “off the top,” before any taxes are taken out of your gross salary. Contributions to Roth IRAs, conversely, are made with your after tax dollars, or net salary. This difference in the tax status of contributions is evident in almost every transaction involving a Roth IRA. (more…)
Rollover IRA – Roth IRA Conversion: Does it Make Sense for You?
Posted by admin on March 16th, 2010
The benefits of Roth IRA accounts are well established. With Roth IRAs, you can make tax-free withdrawals in qualified situations (provided you meet certain holding criteria) and you don’t need to make required withdrawals by a certain age, as with traditional IRA accounts. If you anticipate being in a higher tax bracket when you get older, a Roth IRA account can help save you money as the taxes on Roth IRA contributions are paid up front.
So why wouldn’t you convert all of your traditional IRA holdings to Roth IRA accounts right away? Well, there are a few catches, perhaps the most noticeable of which is that you’ll have to pay ordinary income taxes on any funds you convert to your Roth IRA rollover account. Let’s look at a few situations in more detail to see where a rollover IRA to Roth IRA conversion makes sense for you: (more…)
