Roth Conversions Are Taxable

Posted on Tuesday, November 06, 2012

If you convert a traditional IRA to a Roth, there's a price to pay. Converted amounts attributable to tax-deductible contributions, plus all of the earnings, are taxable at ordinary income rates. To lessen the tax hit, you may choose to convert only a part of your IRA to a Roth. You can convert as much as you like, or you can convert some each year if that seems advisable.

Posted in Tax And Accounting Topics For Business

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