The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Reasons to convert a Traditional IRA to a Ro||Date: 4/21/2010 7:57 PM|
|Author: JAFO31||Number: 110243 of 120820|
<<<When the Roth-IRA first came out, I converted a large amount, but in that year I got the benefit of distributing the tax over a four-year period.>>>
"Well, should you choose to convert this year you do get to spread the tax over 2 years.
Ther current proposal is you spread the income over two years, which in effect also spreads the tax at whatever the current tax rate is in 2011 and 2012, respectively.
IIRC, the original 4-year was a spread the tax (based on year of conversion taxes), though I may not be remembering correctly. Upon further review, it may also have been a spread the income law.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|