Had another thought about the Roth IRA scams!If, you roll-over a current IRA to a Roth type, you must pay taxes on the rolled-over monies, because this now becomes a distribution. If you roll-over in 1998 you can distribute your tax burden over a four year period. If you take monies from the Roth roll-over, to pay the taxes, the monies are taxed as ordinary income for the year of the roll-over.If you take money from another investment (I assume it is invested. Who has money sitting around, not doing anything?) to pay the roll-over tax, you loose the dividends, interest etc. from that investment.Now, I've read a number of articles on this topic arguing that a roll-over is good for everyone. Vanguard included. However, I don't think I've read any discussions about the social security angle nor the loss of income from the investments used to pay the roll-over tax.Am I all wet?
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra