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


For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

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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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