Time is running out for teh 2010 elimination of the $100,000 income limitation on conversions to Roth IRA's. For the remainder of this year, you can elect to pay the tax over the tax years 2011 and 2012.
The Roth Advantages are:
Tax free growth
No required minimum distribution
Beneficiaries do not pay tax when inherited
Beneficiaries may continue to grow tax free
Things to consider before converting:
Will your tax brackets be considerably lower during retirement years?
Do you ahe ample liquid assets available to pay the tax on conversion?
Is leaving the wealth to the next generation part of your long range plan?
Should you pay all the tax in 2010?
These are questions that should be answered before you decide whether a conversion is right for you. Please call us for help with that analysis.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment