For instance, if you’re able to pay Roth conversion taxes from a taxable account, such as your standard brokerage account, the full value of your IRA can move to the Roth account. By not paying ...

The immediate tax bill can be avoided by allocating after-tax funds to a Roth IRA and pretax funds to a traditional IRA. Be sure to consult a tax professional if you're unsure of how a conversion ...

Jean Folger has 15+ years of experience as a financial writer covering real estate, investing, active trading, the economy, and retirement planning. She is the co-founder of PowerZone Trading, a ...

The key is you need earned income in order to contribute to a Roth IRA. A conversion, on the other hand, takes money that’s already inside a tax-deferred account and moves it over to a Roth account.

There’s no way to entirely avoid paying income taxes when you convert a traditional IRA into a Roth account. However, with smart financial planning you can reduce the impact of those taxes.

The Roth IRA — a popular retirement account — is similar to a traditional IRA in that you can regularly contribute to the account and watch your investments grow so you have a nest egg to tap ...

Converted Roth IRA funds are tax- and penalty-free after five years from Jan. 1 of the year of the conversion. Roth IRA earnings are tax-free after age 59 1/2 and a five-year holding period.

Don't forget you can open and contribute to a 2025 Roth IRA until the due date of your 2025 tax return on Tuesday April 15, 2026. Here's what you need to know about 2025 Roth IRA contribution and ...

Finally, you could lower your tax bill in any given year by stretching out your Roth IRA conversions over several years, rather than doing it all at once. You’ll want to consult with your tax ...