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