The year 2010 may well be remembered as the year of the Roth IRA. That’s because legislative changes that have taken effect this year are making it more advantageous – and possible – than ever before to rollover money from traditional IRAs into Roth IRAs. Most notably, the previous limits on adjusted gross income that prevented some individuals from investing in a Roth IRA are now gone, making this great option available to everyone. (more…)
Archive for the ‘IRA Rollover Tax Implications’ Category
Avoid the IRA Rollover Tax with a Direct Transfer
Posted by admin on March 23rd, 2010
Moving your money from an old employer-sponsored retirement plan – like a 401k or a 403b – to an IRA can be a smart move financially, as these accounts typically offer a wider range of investment opportunity and higher returns overall. However, if you aren’t careful, you could wind up on the hook for a serious IRA tax penalty. Let’s look more closely at how you can avoid this situation. (more…)
Understanding IRA Rollover Tax Implications
Posted by admin on March 16th, 2010
Tax planning should be a crucial part of your retirement savings strategy, as simple tax mistakes can easily cut the balance of your retirement accounts in half. Let’s look at some of the most common situations that can trigger IRA rollover tax implications within your retirement plans.
IRA Rollovers from Employer-Sponsored Plans
The most common situation that triggers an IRA rollover tax is the rollover process itself, where funds are moved from an old employer-sponsored 401k or 403b account to a traditional or Roth IRA. Account holders have two major options when initiating an IRA rollover – a direct rollover or an indirect rollover. (more…)