Roth Rules

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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

Source: www.irs.gov

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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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