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|Subject: Re: IRA to Roth IRA Conversion||Date: 8/9/2013 1:00 AM|
|Author: GLlacuna||Number: 72743 of 75337|
In comparison, converting to a Roth would shield any capital gains or investment income from future taxes.
AJ - this is the heart of my wanting to employ a strategy of converting from a traditional IRA to a Roth.
I'm only 50 so there will be no withdraws from my IRA's for quite a while. The responses were all very helpful. But at the heart of the strategy is this:
Traditional IRA balance of $200K, for simplicity lets assume it grows in value (investment growth & Dividends) by $100K between now an when I start to withdraw. I will pay taxes on the $300K as its withdrawn from the IRA.
Roth Conversion - of the $200K I pay taxes on the $200K now at conversion(I would do this over a few years and minimize the tax rate.) Am I correct that the $100K of growth in the Roth IRA, would not be taxable, even when I eventually with draw it??
Is my understanding correct??
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