Will I Be Taxed if I Convert Traditional IRA to Roth IRA?
February 25th, 2008 by admin
Yes, my dear friend you are very right that you will be taxed when you convert the assets or income to roth IRA from traditional account. Now why people do convert traditional ira to roth ira thats because they think that they will be tax free in future. Absolutely right but they don’t know the fact that one has to pay taxes for roth accounts also for previous contributions and for the earnings of the account. And mostly the tax rates are higher than traditional earning. Now don’t get nervous they are not going to take all the rollover asset. I said on earnings! And this means though is that the high tax on the amount earnings will still be less compared to traditional IRA taxes.
Posted in Business
