Comments on: 6 Things to Know About the 2010 Roth IRA Conversion

By: This Week in Personal Finance | Redeeming Riches

This Week in Personal Finance | Redeeming Riches — Thu, 29 Jul 2010 10:23:08 +0000

[...] at Personal Dividends writes about 6 Things You Should Know About the 2010 Roth Conversion. This was a very solid post. For more on Roth Conversions, check out my guest post over at Wise [...]

By: Top 6 Savings Mistakes

Top 6 Savings Mistakes — Fri, 19 Feb 2010 09:20:59 +0000

[...] that results in a tax hit, as well as a possible penalty. Instead of cashing out a retirement plan, roll it into an IRA, or roll it into the plan offered by your new [...]

By: Miranda

Miranda — Mon, 15 Feb 2010 18:12:04 +0000

Thanks for sharing that tip, Joe! A good consideration when you are looking at conversion options. And thanks, Dave. I really like my Roth
.-= Miranda´s last blog ..Buying Gold: The Complete Beginner’s Guide to Investing in Gold =-.

By: JoeTaxpayer

JoeTaxpayer — Fri, 12 Feb 2010 01:24:30 +0000

May I add a (7.)?
Money you added to your IRA that was post-tax is pro-rated when you convert, e.g. if your IRA totals $50,000 and you have $25,000 in post tax money tracked via form 8606, 50% of the conversion is taxed, you can’t pick and choose. But – if you have a 401(k) whose investment choices are appealing and fees are low, you can roll the pretax IRA portion into that 401(k) if your employer allows. Then the full conversion to the Roth is only post tax money and ‘zero’ tax is due on conversion. Sweet. And not commonly discussed.

By: dave

dave — Thu, 11 Feb 2010 19:40:50 +0000

Great post Miranda, Roth IRAs do have many benefits, but whether traditional IRA holders should convert or not really depends on their specific situation. I still believe that the Roth’s pros outweigh the cons.