Tip Sheet Credibility: 24
|Yes, you pay income taxes on the amount of the IRA for the year you convert to a Roth. That's what lets you to have it non-taxable forever. But if you convert before tax rates go up (they WILL go up), your tax bill is smaller and only a one-time charge.|
Tip Credibility: 48 (Best Tip!)
|In 2010, you can convert your IRA to a Roth IRA regardless of income. With a Roth IRA, your withdrawals (plus gains) are tax-free and they aren't mandatory. Convert under 2010 taxes quick before tax rates go up. And have a tax-free retirement forever.|
Tip Credibility: 22
|We will have to pay the taxes on our Regular IRA to convert it to a Roth IRA now won't we? |
Tip Credibility: 14
|One way to pass your wealth to your children is to make gifts to them while you are living. Most gifts passed to the child at least seven years before death are exempt from tax|
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|You can spread out the full tax payments through the 2012 tax year. You do not need to pay it off immediately. This is like taking a tax-free loan. You can also pay the tax bill out of your other money and not necessarily from your your IRA.|
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