Roth Conversion: The Devil is in the Details
Earlier this year, the NCPA released a Brief Analysis on the 2010 tax law change that allows individuals of any income level to convert a traditional IRA to a Roth IRA. For most people, the benefits outweigh the costs. But a New York Times article released
today gives some important tips on how to convert. If you are considering a Roth conversion, but are not into following up and paying attention to detail, you may find yourself unintentionally paying the tax bill out of the Roth IRA, as well as a 10 percent penalty. Most Roth mistakes can be fixed within 60 days of conversion, says the Times. But procrastinators beware!
This is very timely advise because we are thinkinking about it because we believe that taxes will be going up next year or a bit later.