As you may be aware, in 2010 Congress changed the income limit for Roth conversions.* Before 2010, households with modified adjusted gross income greater than $100,000 were not eligible for a Roth conversion. Now anyone may Roth existing retirement accounts regardless of their income. While you must pay tax when you convert to a Roth, all future growth in the Roth account is received tax free, and no minimum distributions are required (RMDs). Converting to a Roth is not for everyone, an in depth analysis is required before taking any actions. SA Financial Solutions has some of the most sophisticated Roth conversion software and can show tax liability, future projections, as well as ways to mitigate the tax burden of the conversion. **
Below is chart outlining the basic differences between a Traditional IRA and a Roth IRA. If you are interested in learning more about possibly converting your retirement accounts to a Roth, please give us a call at (210) 497-8743 for your no cost initial consultation.
Traditional IRA | ROTH IRA |
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