Should You Convert Your Roth IRA?
Hey folks, I’ve got a news flash for you. Going into October, it isn’t just football season, it’s recharacterization season. While most of you are worried about the stock market, I hear individuals and businesses talk everyday about what they should do with their money. (i.e. should I put it in the market, should I put it in a bank account, where is the best place that I should put my money?).
The reality is right now, you can’t always think about your portfolio, but also you have to start think about tax strategy. With that being said, for folks out there that make less than $100,000 adjusted gross income, you’ve got the ability to do what’s called recharacterizing your IRA. What this would give you is the ability to do if you make under $100,000 in adjusted growth income is to take your existing IRA and put it into a Roth IRA.
There is a handful of legislation that goes into effect in 2010 that would allow you to spread that tax liability over a couple of years. The problem is, we don’t know where the market will be in 2010. For people that are under the age of 45, and you have lower balances in your IRA from jobs that you had in the past, there couldn’t be a better time to go about learning more about this opportunity with your IRA. As always, consult a qualified CPA or accountant before making tax decisions.
Should You Convert Your Roth IRA? oXYGenFinancial – Your Smart Money Moves…
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