Post Tagged with: "Roth"

Roth IRA Recharacterization 2012: Undoing a Roth Conversion

Roth IRA Recharacterization 2012: Undoing a Roth Conversion

Nearly everyone is an excellent candidate for a Roth conversion this year. If you failed to convert money from an IRA to a Roth IRA last year, you missed an opportunity. Don’t make the same mistake this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.

Read more ›
Roth IRA Conversion 2012: A Roth Conversion Calculator

Roth IRA Conversion 2012: A Roth Conversion Calculator

Nearly everyone is an excellent candidate for executing a Roth conversion this year. At the end of 2012, tax rates are going up across the board. With political gridlock and a debt-strapped national government, tax rates are unlikely to be this low again in the near future. Because you can always undo part or all of a conversion with a Roth recharacterization, you can’t convert too much. But it is helpful to have a target amount in mind before you begin.

Read more ›
Roth IRA Conversion 2012: Are You a Good Candidate?

Roth IRA Conversion 2012: Are You a Good Candidate?

The government gave you a tax write-off when you put money into your individual retirement account (IRA). Now the government can and will be changing the tax rate you have to pay when you withdraw the money. And when you turn 70 1/2, the government requires you to take at least the required minimum distribution (RMD) each year to force you to pay that tax. It is as though your IRA has a mortgage on it and next year the government will be raising the rate you will have to pay. A Roth conversion is like paying off the mortgage on your IRA early at these lower rates in order to own your IRA free and clear.

Read more ›