Roth IRA Conversion Week: Social Analysis and Final Thoughts

Our Roth Conversion Week detailed many facets of the Roth conversion conversation ("Is a Roth conversion right for me?"), the advantages and disadvantages of conversions into Roth IRAs and Roth 401(k)s and finally, the Top 10 Roth conversion mistakes you should avoid. You can go here to read all of the articles published during Roth Conversion Week....

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The Top 10 Roth Conversion Mistakes

We end Roth Conversion Week with a list you never want to be on. Roth conversions are powerful, tax-free retirement vehicles if handled correctly, but if a mistake is made, you may owe a good portion of your hard-earned savings to taxes and penalties. Here's a list of the Top 10 Roth IRA (and conversion) mistakes you must avoid. 1. Making a contribution...

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Slott Report Mailbag: All About Roth IRA Conversions

This special edition of The Slott Report Mailbag answers several of the common Roth conversion questions we receive - from the beginning "conversion conversation" to the actual conversion process. As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Find ...

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Where Should You Convert? Roth IRA or Roth 401(k)?

You’ve had "the conversion talk" and have decided that a Roth conversion is in your best interest. Now you have a choice ... should you convert your existing 401(k) money to a Roth 401(k) - your plan must have adopted this voluntary feature in order for you to do so - or should you make a conversion to a Roth IRA? While on the surface these two types...

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The BEST Way to Convert Your IRA to a Roth IRA

If you're thinking about converting some or all of your IRAs to a Roth IRA, there are two ways to do it. The two ways are by taking an IRA distribution or by direct transfer. Regardless of which method you choose, it will be treated and reported as a distribution from your IRA and a conversion deposit into your Roth IRA. IRA-to-Roth IRA conversions are taxable to you as ordinary income, but no 10% penalty applies, even if you’re under age 59 ½. If you take a distribution from your IRA, you can complete the conversion by depositing the funds into...

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