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 2010 or over a two-year period (2011 and 2012). 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.
To learn more about converting your Traditional IRA to a Self-Directed Roth IRA LLC, please contact one of our IRA experts at 800-472-0646.
|Self Directed IRA →||Solo 401K →|
|Roth IRA →||Business Funding →|