What you don't know about converting money from your traditional IRA to a Roth IRA could cost you – or your beneficiaries – dearly. Here are just three common misconceptions.
- Converting money from a traditional IRA to a Roth IRA is a sure way to reduce your federal income tax. (Not always.)
- Roth IRAs can grow tax-free forever, withdrawals are never required. (It depends.)
- Converting money to a Roth IRA has nothing to do with your Medicare or Social Security benefits. (Actually, it matters a great deal.)
Share your e-mail address below to download this free Special Report, discover exactly what's at stake, and steer clear of pitfalls. Rely on Kiplinger’s trusted advice and guidance to help you make the right moves today to minimize the tax bite and maximize your spendable savings tomorrow.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Controversial Capital Gains Tax Upheld in WashingtonThe state’s historic long term capital gains tax is projected to bring in $1 billion over the next two years.
-
Federal Electric Bike Tax Credit Would Offer up to $1,500
Lawmakers have proposed a bigger version of an e-bike bill that would provide a tax credit of up to $1,500 on some new electric bikes.
-
Biden Wants a Higher Child Tax Credit and So Do Some Republicans
President Biden wants to revive the higher child tax credit and monthly advance payments, while some Republican senators have their own ideas for the popular tax break.
-
IRS Confirms Tax Fate of California Middle Class Refunds
Millions of Californians worried about paying tax on middle class tax refunds have an answer along with other tax deadline relief.
-
Will You Pay Taxes on Your State Stimulus Check?
Millions of people who received state "stimulus" payments in 2022, have wondered whether the money will be taxed.
-
Is Your Favorite SUV EV Eligible for a Tax Credit?
The SUV that you thought wasn't eligible for the electric vehicle tax credit before, might now qualify.
-
The Many Definitions of Modified Adjusted Gross Income (MAGI)
The definition of modified adjusted gross income differs depending on what the calculation is used for.
-
Does the IRS Audit Some Taxpayers More Than Others?
A study of IRS audits, from Stanford University researchers and the U.S. Treasury Department, looked at whether some taxpayers are audited more than others.
