Time is swiftly running out to take advantage of the unique opportunity for deferral of tax payments on Roth IRA Conversions in 2010. In case you’re not up-to-snuff on this, in 2010 all taxpayers with traditional IRAs or qualified retirement plans that are eligible for rollover have the opportunity to convert the account (or part [...]
Posts under ‘Roth conversion’
Valuation for Roth IRA Conversions
You’ve read all about Roth IRA conversions, and you know a lot about the questions that one must resolve in order to make one of these conversions work out for you. Have you considered how the valuation rules will impact your decision process? Valuation of your IRA If you have IRAs that contain both pre-tax [...]
A Terrible, Terrible Idea
My thanks for Natalie Choate for analyzing and pointing out the following information. Ms. Choate is truly a rock star in the world of IRA law, and much gratitude is owed to her by those of us in the financial community for her thorough analysis and commentary that she provides on such matters as this. [...]
Using Capital Gains and Losses to Help With a Roth Conversion
Many analyses done with respect to Roth IRA conversions only come out to a positive outcome when the attendant tax on the conversion is paid from non-IRA sources. For many folks this shoots down the entire prospect, as there is no available cash outside of IRAs and other investments to use to pay the tax [...]
Roth Conversion While Receiving 72t Payments
With all of the conversation going on with regard to Roth IRA Conversions, I thought it would be useful to address a special set of circumstances with regard to Conversions. As the title implies – we’re talking about the eligibility of an IRA for conversion if it is also subject to 72t, or a Series [...]
Tax Diversification for Investments
In past articles I have advocated the concept of spreading your tax-treatment out – so that you have money allocated in three major types of accounts: deferred tax (such as IRAs and 401(k) plans), tax-free (Roth IRAs), and capital gains taxable accounts. The reason behind this is that our fine government has this tendency to [...]
How to Resolve an Over-Contribution to Your IRA
Even with our “best laid plans”, sometimes we make mistakes. Perhaps you underestimated your income for the year and contributed more to your IRA than could be deductible; maybe you rolled over an amount that was not eligible for rollover; or maybe you made a contribution to an IRA that you were not eligible to [...]
Roth Conversion Analysis – Make Sure You Get the Tax Right
There are almost as many ways to perform the analysis on Roth IRA conversions as there are reality TV shows about celebrity brat children these days… The point of this article is to make certain that any calculation you’re doing with regard to a Roth Conversion treats the tax appropriately. In reviewing whether or not [...]
Roth IRA Conversion Tax Payment Wrinkle
Some very clever folks have looked at the 2010 Roth IRA conversion facts, including the ability to spread the tax over tax years 2011 and 2012, and have discovered a unique situation… What would happen if I did the Roth conversion in 2010, elected to be taxed half in 2011 and half in 2012, but [...]
What Hath Congress Roth?
… or better yet, what will they Roth in the future? You’re right, terrible attempt at a pun. In case you aren’t a retirement and financial planning geek like myself, there has been a proposal put forth by the current administration to require all employers to automatically enroll employees in a retirement plan. I find [...]
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