Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124215  
Subject: Re: taxes paid on Roth Date: 1/31/2000 2:27 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I just converted Sep IRA to Roth and paid taxes. If I had not converted and I die before retirement do my heirs have to pay taxes on retirement account if my total estate is less than 650,000?

It seems like paying the taxes in advance may be negative. I realize the positive reasons for converting but this one has me puzzled.

Any help would be appreciated.

You're confusing the estate tax with income taxes. Your heirs would have to pay income taxes on your SEP IRA - but not on your Roth (this would be a qualifying distribution from a Roth). The $650K figure is for estate (and gift) taxes. I think IRA's are usually included in the taxable estate, so your conversion makes no difference for this tax.

Also I dont understand threaded vs un threaded messages. I am not sure where I will find this message.

The easiest way to find a response to your message is to click on "Favorites/Replies" on the blue title bar (at the top and bottom of message board screens). Then click on replies to my posts, and you're there.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.