Roth Rules

Roth Rules

If you have a Roth IRA or are considering converting your Traditional IRA to a Roth IRA, do you know some of the basics?

  • Anyone can convert their Traditional IRA to a Roth IRA regardless of income
  • Roth IRA contributions are never deductibl
  • You can no longer recharacterize Roth conversions if you change your mind
  • Roth IRA contributions may still be recharacterized
  • As long as you meet the income requirements, you may contribute to a Roth IRA at any age
  • Qualified Roth IRA distributions are tax-free and penalty-free
  • Roth IRA owners do not have an RMD requirement
  • Roth IRA beneficiaries are subject to RMD rules


More Updates


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

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Rolling Over an RMD

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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Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

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