Question by Brian T: Is it possible to change a Roth IRA to a traditional IRA?
I am young, and I know most financial advisors/calculators out there tell you I would stand to benefit from being in a ROTH IRA. However, after researching this, I know longer believe there’s any guarantee the gov’t will keep the policy of not taxing my returns when I retire 30 years from now. I’d rather take the tax benefit now. Your thoughts?
Best answer:
Answer by dan
If you contributed the money into the Roth this year (2007) you can do what is called a “recharacterization.” The company you invest with will have a form to fill out. The only thing is, you can recharacterize THIS year’s contribution back to the traditional IRA, but any contributions you made to a Roth in prior years cannot be recharacterized.
What do you think? Answer below!
Question by barry b: When I change my IRA to a ROTH IRA can I pay the taxes from the IRA?
I am retired and want to change my ira to a roth ira so I don’t have to worry about future taxes from the roth ira.
what are the rules of the roth ira?
Best answer:
Answer by Scott
It the same rules as for an IRA. The difference is on the withdrawal. Roth’s you have already paid them and for a standard IRA you have not. So on each payment from an IRA you will owe taxes. On a Roth each payment will be tax exempt.
Yes, you can have them withhold the taxes from the amount being rolled over. Just tell them what percentage to withhold (min 10%).
Not sure why you want to pay a lump sum to the IRS at this point? Are you expecting large gains from the market????
What do you think? Answer below!
I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.
I am young, and I know most financial advisors/calculators out there tell you I would stand to benefit from being in a ROTH IRA. However, after researching this, I know longer believe there’s any guarantee the gov’t will keep the policy of not taxing my returns when I retire 30 years from now. I’d rather take the tax benefit now. Your thoughts?
I am retired and want to change my ira to a roth ira so I don’t have to worry about future taxes from the roth ira.
what are the rules of the roth ira?
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