Convert Traditional IRA to a Roth IRA Bellaire TX

Converting to a Roth IRA from a traditional IRA may provide an excellent opportunity to build additional financial resources for your retirement years. In many cases, a person who uses the Roth to invest with post-tax dollars is much better prepared for retirement than the individual who does not.

Local Companies

Fitzgerald Financial Partners, LLC
1-866-437-7769
2500 City West Boulevard
Houston, TX
Fitzgerald Financial Partners, LLC
713-623-1353
2500 City West Boulevard
Houston, TX
Retirement Planning Houston, Texas - Fitzgerald Financial Partners
713-623-1353
2500 City West Boulevard
Houston, TX
Power Financial
(713) 980-0800
6300 West Loop S Ste 550
Bellaire, TX
Saltgrass Financial Group
(713) 861-3611
5909 West Loop S
Bellaire, TX
Consumer Credit Counseling Service of North Central Texas Inc
(972) 881-2887
101 E Park Blvd
Plano, TX
Elite Financial Services
(956) 661-8876
4305 N 10th St
McAllen, TX
True Choice USA
(210) 499-0911
1000 Central Pkwy N
San Antonio, TX
Regal Financial Group
(713) 460-3615
13201 Northwest Fwy
Houston, TX
Cex Financial Services Inc
(713) 975-9550
1880 S Dairy Ashford St
Houston, TX

Convert Traditional IRA to a Roth IRA





Converting to a Roth IRA from a traditional IRA may provide an excellent opportunity to build additional financial resources for your retirement years. In many cases, a person who uses the Roth to invest with post-tax dollars is much better prepared for retirement than the individual who does not.

If qualified, deducting your traditional IRA contribution allows for an immediate tax benefit. Contributions to traditional IRAs are tax-deferred and are later taxed at whatever the individual’s income tax bracket is at the time of withdrawal. (A 10% penalty may apply if these withdrawals are made before the age of 59 1/2.) Roth IRA contributions, however, are paid with after-tax dollars and will never be taxed again -- provided the investor follows specified government regulations. All profits earned inside a Roth IRA accrue tax-free for retirement.
Some benefits from converting from a traditional IRA to a Roth IRA are:

  • No mandatory distributions Investors are not required to take withdrawals from their Roth IRA at 70 ½ as with traditional IRAs.
  • No tax on gains when withdrawn
  • Investment prices

    If you think your investments are currently undervalued, then purchasing them in a Roth IRA enables you to avoid paying tax on the gain.

    A Roth IRA conversion may be done with all or a portion of your account. Upon converting, you will be responsible for paying taxes on the traditional IRA. It is advantageous to pay these taxes through a different account. This is due to the fact that if you pay the taxes out of an IRA and are less than 59 1/2 years of age, you will owe at least a 10% early withdrawal penalty on that amount and could be subject to additional income tax.

    If you are thinking of converting to a Roth IRA, professional advice should always be sought. Before a decision is made, think carefully about your current and expected retirement tax bracket, age and expected returns. In most cases, the higher you expect your returns to be, the more attractive the Roth option looks. Remember to ask your financial advisor or CPA to discuss with you the different factors that should be taken into account when making this important decision.

    This article is (c) Copyright 2001-2008 by Guidant Financial and may not be reproduced in any format whatsoever without prior written consent of the author.

    Click here for more information on IRAS
  • Featured Local Company

    Retirement Planning Houston, Texas - Fitzgerald Financial Partners

    713-623-1353
    2500 City West Boulevard
    Houston, TX
    http://www.fitzfp-llc.com

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