Thinking About a Roth?

Thinking About a Roth?

Roth and traditional IRAs have the same objective: both provide an incentive to save and both provide income after retirement. However, there are a few distinctions you should be aware of if you are thinking about contributing or converting to a Roth IRA.

Anyone Can Convert

Even if you are a high-income earner and cannot directly contribute to a Roth, anyone is permitted to convert to a Roth IRA at any time (income taxes apply to conversions).


Roth Contributions are not deductible, but the earnings grow tax-free and qualified distributions are tax-free.


Roth IRA owners are not subject to RMDs at age 70½. Also, you can continue making contributions to a Roth IRA after age 70½ if you have taxable compensation and fall within the MAGI limits.

*Special Note: Roth beneficiaries are required to take RMDs.

Is a Roth IRA right for you? Contact your retirement distribution professional or qualified accountant if you have any Roth IRA questions or need assistance converting to a Roth.


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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