Converting a Traditional IRA to a Roth in Retirement There’s no age limit or income requirement to be able to convert a traditional IRA to a Roth. You must pay taxes on the amount converted, although part of the conversion will be tax-free if you have made nondeductible contributions toRead More →
Roth IRA conversions don’t affect your eligibility to contribute. What is the 5 year rule for Roth conversions? The first five-year rule states that you must wait five years after your first contribution to a Roth IRA to withdraw your earnings tax free. The five-year period starts on the firstRead More →
A backdoor Roth IRA is a retirement savings strategy whereby you make a contribution to a traditional IRA, which anyone is allowed to do, and then immediately convert the account to a Roth IRA. Who is eligible for Backdoor Roth IRA? Roth IRA Income Limits You’re a perfect candidate forRead More →
Yes, the deadline is December 31 of the current year. A conversion of after-tax amounts is not included in gross income. Any before-tax portion converted will be included in your gross income for the conversion tax year. Can I reverse a Roth conversion in 2020? To reverse a conversion byRead More →