Nov
25
IRAs - To Roth or Not to Roth: That’s the Conversion Question
Second thoughts are part of life, which may explain why some investors change their minds about the types of accounts they use for retirement savings in Charleston SC, Charlotte NC, Miami FL and Atlanta GA. This could be the case for traditional and Roth IRAs, which feature different tax treatments of contributions and distributions.
The IRS allows taxpayers to convert traditional IRA assets to a Roth IRA — and even to recharacterize (revert assets back to a traditional IRA) under certain conditions. Until recently, however, assets in employer-sponsored 401(k), 403(b), and governmental 457(b) plans could be converted to a Roth account only if they were considered distributable assets.
The IRS allows taxpayers to convert traditional IRA assets to a Roth IRA — and even to recharacterize (revert assets back to a traditional IRA) under certain conditions. Until recently, however, assets in employer-sponsored 401(k), 403(b), and governmental 457(b) plans could be converted to a Roth account only if they were considered distributable assets.
