Top related persons:
Top related locs:
Top related orgs:

Search resuls for: "eyeing Roth"


2 mentions found


As year-end approaches, you may be eyeing Roth individual retirement account conversions. The strategy, however, boosts your income, which can have other tax consequences, experts say. Roth conversions shift pretax or nondeductible IRA funds to a Roth IRA, which provides future tax-free growth. Otherwise, you could lose eligibility for certain tax breaks or unexpectedly trigger tax hikes. Here are a couple of other major tax issues to watch, experts say.
Persons: eyeing Roth, Roth, JoAnn May, Helene Organizations: Roth IRA, Asset Management, Finance, Social Locations: Riverside , Illinois
However, lower account balances may provide two opportunities: the chance to buy more shares for the same dollar amount and possible tax savings, depending on how much you transfer. And the tax savings may be compounded for investors during lower earning years, experts say. We regularly discuss Roth conversions for retired clients who haven't started taking Social Security yet because their incomes are temporarily low. "By doing a Roth conversion this year, she'll be able to turn a hard situation into massive tax savings," he said. But depending on your taxable income, you may also benefit from a lesser-known move known as "tax gain harvesting."
Total: 2