Anyone can convert their traditional IRA to a Roth IRA. However, Roth IRA contributions come with limitations.
For 2017, IRA contributions are limited to $5,500 ($6,500 if age 50 or older).
For Roth IRA contributions, there is an additional phase out limitation for those who are high income earners.
The following chart illustrates the Roth IRA contribution phase out thresholds for 2017:
*Please Note: Roth IRA contributions are never deductible.
Source: www.irs.gov
The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be
Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to
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