What is the disadvantage of making a conversion from a traditional IRA to a Roth IRA?
The key disadvantages of making a conversion from a traditional IRA to a Roth IRA are: • The amount being converted from a traditional IRA into a Roth IRA is subject to inclusion in your taxable gross income, and thus increases your taxable income and tax, in the year of conversion. You therefore may have a significant tax bill to pay with little or no funds available from the conversion. • There is no penalty imposed on the conversion as long as the full amount of the distribution from the traditional IRA is converted into the Roth IRA. Otherwise, the premature penalty of 10% of the amounts not converted into the Roth account may apply. var singleFaqId=”188″; Found in FAQ category: …Traditional IRA, GENERAL QUESTIONS, …Roth IRA close | top Can funds in another IRA be rolled over to a Roth IRA? Yes. Assets in other IRAs (traditional, rollover, and SIMPLE) can be converted to a Roth IRA if the individual or married couple has an AGI (Adjusted Gross Income) of less than $100,000. The
