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When filing taxes for the year of the conversion, use Form 8606 to inform the IRS about the rollover. Bottom line Any money moved from a traditional retirement account to a Roth IRA is considered ...
Here’s how to use a Roth IRA conversion to set up tax-free income for your retirement. ... you’ll need to submit Form 8606 to notify the IRS that you’ve converted an account to a Roth IRA ...
However, a Roth conversion also comes with immediate tax consequences that require careful planning. Read Next: Suze Orman’s Top 5 Tips That Will Save Retirees From Financial Disaster
A Roth conversion ladder can be a smart strategy that allows you to move funds gradually from one account (traditional IRA) to another (Roth IRA) without triggering any tax penalties. This ...
Transferring some of your retirement savings from a tax-deferred account like a 401(k) to a Roth IRA can help you reduce or possibly avoid required minimum distributions (RMDs) and income taxes ...
Some people opt to do a Roth conversion, moving funds from a pretax retirement account such as a 401(k) into a Roth IRA. This allows you to take your distributions tax-free (though you do pay ...
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