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Converting assets to a Roth IRA from a Traditional IRA

Sure- it is a taxable event so consult a tax professional.  There are several benefits to conversions:

  • Roth withdrawals will be tax and penalty free if you are at least 59 1/2 and the account is at least 5 years old.
  • Roth money can continue to grow longer.  You won't be required to started withdrawals at age 70 1/2.
  • Your heirs will have to take annual withdrawals, but they won't have to pay federal income tax on the money if the account's been open for at least five years.
Posted on Monday, December 3 by Registered CommenterWise Owl | Comments Off