What you don't know about converting money from your traditional IRA to a Roth IRA could cost you – or your beneficiaries – dearly. Here are just three common misconceptions.
- Converting money from a traditional IRA to a Roth IRA is a sure way to reduce your federal income tax. (Not always.)
- Roth IRAs can grow tax-free forever, withdrawals are never required. (It depends.)
- Converting money to a Roth IRA has nothing to do with your Medicare or Social Security benefits. (Actually, it matters a great deal.)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
A Bunch of IRS Tax Deductions and Credits You Need to KnowTax Breaks Lowering your taxable income is the key to paying less to the IRS. Several federal tax credits and deductions can help.
-
Don’t Miss This $2,500 Tax Break for Paying Your Student LoanTax Deductions Do you qualify for the student loan interest deduction this year?
-
Six Tax Breaks That Get Better With AgeTax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
-
Biden Proposes New Homebuyer Tax CreditsTax Credits President Biden is calling for new middle-class tax breaks including a mortgage tax credit.
-
Will Florida Property Tax Be Eliminated?Property Taxes A new proposal is raising questions about revenue generation in the Sunshine State.
-
States That Won't Tax Your EVState Tax Most states impose additional fees on electric vehicles, but these states don’t penalize EV owners, and some also offer other tax incentives.
-
Tax Season is Here: Big IRS Tax Changes to Know Before You FileTax Filing Tax deductions, tax credit amounts, and some tax laws have changed for the 2024 tax filing season.
-
Your Arizona Family Rebate is Taxable: What to KnowState Tax Thousands of Arizona families will need to report income from special child tax relief payments.
