Beginning in 2010, the modified Adjusted Gross Income (“AGI”) and filing status requirements for converting a Traditional IRA to a Roth IRA are eliminated.
Below are some important points to consider when deciding whether to convert your Traditional IRA to a Self-Directed Roth IRA LLC.
- Do you have the ability to pay income taxes on the money you convert from your Traditional IRA?
- Based on your income tax bracket, does it make sense to pay the entire tax due in 2018. If you expect your rate to go up, converting may be for you. If you think it will go down, then the opposite holds true.
- Do you anticipate withdrawing Roth IRA funds for personal use within five years of conversion? If so, you may face taxes and penalties if you withdraw within five years of a conversion.
Converting a Traditional IRA to a Roth Self-Directed Roth IRA LLC has a number of tax advantages and can offer you multiple tax and investments benefits.