Greetings fools;I have heard that there are tax advantages for rollovers that will be ending this year. don't know what they are - am not terribly investment/tax savy . . My question: should I convert/rollover any or all of these to an IRA (presumably ROTH) this year? I'm 50 y/o; expect to work many years yet!(is there another board I should post this at? foolish 401ks??)Here's what I got:an ESOP directed account with a former employer: @ $5900 vested balance; now all cash no stock; 3 fund options - good returns low expensesa 401k savings with the same former employer: @ $5600 vested; several fund options - different classes, good returns low to mod expenses - none above 1.23%an inherited IRA worth @ $6000; first acquired this year; first RMD will be Nov 2012. Need to move this to another brokerage or rollover or something - do not like fees at Prudential. I realize if I 'roll' this it will be a 'distribution' (?) with taxes paid in full now. I expect that my tax bracket at retirement will be near what it is this year - low.an old Traditional IRA - $4000 - I am self employed; also have an HSA (if that matters but I doubt it) and a SEP, and a Roth IRA. I expect to earn no more than @ $30k gross this year - after all personal/bus deductions - probably @ $20k net? Very low tax bracket! I expect next year's income to be significantly more: >$60k + ?? maybe $80K?Your thoughts?? Thanks in advanceKelly
I have heard that there are tax advantages for rollovers that will be ending this year.One hears all sorts of things from all sorts of sources, and election campaigns don't make it better. I'm not aware of anything affecting retirement account rollovers that's scheduled or even proposed. I will admit that I don't pay attention to campaign tax proposals since they're pretty meaningless until there's proposed stat language. YMMV.an inherited IRA worth @ $6000; first acquired this year; first RMD will be Nov 2012. Need to move this to another brokerage or rollover or something - do not like fees at Prudential. I realize if I 'roll' this it will be a 'distribution' (?) with taxes paid in full now. I don't know where you heard that, but it's not true. You can roll an inherited IRA anywhere you like with zero tax consequence. Just make sure that it's rolled into an inherited IRA, basically the same account heading that it has now.I think it's inevitable that taxes will rise sometime since we have deficit problems and rates are at historical lows. If you have extra cash sitting around to pay the taxes, converting some of your existing accounts to Roth might not be a bad idea. Also, I'd definitely roll the traditional IRA into the SEP account since it's so small. That has zero tax effect.You can read about rollovers in IRS Pub 590.PhilRule Your Retirement Home Fool
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