Truth 9 IRA conversions
For many people, a Roth IRA offers more benefits than a traditional IRA. Unfortunately, some of these people did not come to this conclusion until after they had established a traditional IRA. Fortunately, the law permits you to convert your traditional IRA to a Roth IRA. However, there are some conditions and repercussions of such a conversion.
To be eligible to convert a traditional IRA to a Roth IRA, your adjusted gross income must be no more than $100,000. This figure applies whether you are single or a married person filing a joint return. Oddly, married people who file separate income tax returns are not eligible to convert a traditional IRA to a Roth IRA.
Converting to a Roth IRA is a good news, bad news situation. ...