To Roth Or Not To Roth?

Roth IRAs provide a dual estate planning benefit: Not only are distributions to your heirs income-tax free, but the amounts you pay in taxes on the income you contribute to the Roth

Modified adjusted gross income for the contribution year Any income from the conversion of an IRA to a Roth IRA, rollover from a qualified retirement plan to a Roth IRA, or a

Because you are over age 59½ in 2010, and because more than five years have elapsed from January 1, 2003 (the year you first established any Roth IRA), your withdrawal is a

But remember: You’ll generally owe state and federal income taxes on withdrawals from your tax-advantaged retirement plans (but not on withdrawals from Roth IRAs and Roth

So converting your IRA to a Roth IRA is, in effect, paying off the tax liability now, before it grows.   

Pre-tax contributions: Enter % of annual income % or £Assume max contribution each year After-tax contributions (non-Roth): % Roth contributions: %.

Converting to a Roth IRA may guarantee that a client will owe no additional income tax on the converted funds during retirement and not pay taxes on the interest earned if the

For 2010 you are also eligible to contribute the lesser of 100% of your compensation, or $6,000, as reduced by (1) application of the special income and filing status limitation