Roth IRA Rules- Convert or Not?

by Fern LaRocca CFP®

in 401K,401k Contribution Limits,401k Contribution Limits,Roth 401K,Roth IRA Rules

Many people were not allowed to convert their IRAs to a Roth IRA due to the income limitations. That has changed due to the Pension Protections Act of 2006. Now everyone is eligible to convert their 401ks to IRAs and then to a Roth IRA or from an IRA to a Roth IRA. But should you?

According to a Fidelity survey of 800 retirement plan holders with household income of $100,000 or more 83% who work with an advisor said they were unaware of the changes to the law and 54% said they didn’t know whether they would be eligible to convert. Many brokers and advisors are looking at this as an opportunity to talk to clients and get them to convert their money to a Roth that is managed by them, but is this a good deal for you?

What’s so attractive about the Roth IRA is that it allows tax free accumulation of earnings and you don’t have to pay tax when you withdraw the money.

For a thorough report on how to do a rollover from a 401k to an IRA and conversion to a Roth IRA, sign up in the box and you will get the free pdf download.

For more info listen to this teleseminar on Roth IRA Rules with Curtis Smith CFP®, a fee-only Financial Advisor with Interactive  Capital Management to find out how a Roth IRA works and if it is right for you.


I am pleased to highlight fee-only financial planners who really know their stuff. Curtis is from Sugarland, Texas and a real charmer who is very sharp on retirement planning.  Remember, it is only a half hour long and has valuable information that you need to know now.

Technorati Tags: ,