The bill can be big ... Service (IRS). When you convert after-tax money from a traditional IRA to a Roth IRA, the amount is ...

If your earnings are high enough to prevent you from contributing directly to a Roth IRA, you can use a Roth conversion ... as a traditional IRA or 401(k), to a Roth, you have to pay taxes on ...

It's not difficult to convert a traditional IRA to a Roth if you understand the tax implications, which may pose challenges for people aged 60 and older. Older savers are more likely to own ...

Reviewed by Lea D. Uradu Fact checked by Suzanne Kvilhaug There are a number of reasons to consider a Roth individual ...

I want to do a Roth ... IRA to cover the taxes, this may simply be your only option. If that’s the case you can normally have the financial institution withhold the money when they do with ...

You can get those advantages for funds in your traditional IRA by transferring them into a Roth account. You’ll have to pay income taxes now on funds you convert, but spreading conversions over ...

Roth IRA conversions let you turn tax-deferred savings into Roth, incurring taxes now for tax-free withdrawals later. No limit exists on the amount you can ... conversion. So if you convert ...

A Roth 401(k) can be a great option if you earn too much to qualify for a Roth IRA ... taxes on a conversion might save you money in retirement. Suppose you have $200,000 in your traditional ...

you can roll all your pre-tax dollars into a traditional IRA and all your nondeductible contributions into a Roth IRA. You wouldn't pay taxes on this type of conversion because you already paid ...

And you can do so by converting your traditional IRA to a Roth. While this sounds simple, there’s a major caveat: taxes. You’ll be taxed on the amount in pre-tax dollars you contributed to a ...

The Bottom Line A Roth IRA conversion can be a very powerful tool for your retirement. If you believe that your taxes will rise after you begin withdrawing from your traditional IRA because of ...

A Roth IRA has a couple of significant advantages. Most notably, they allow your retirement savings to grow tax-free (as opposed to tax-deferred) and they have no required minimum distributions (RMDs) ...