Should You Have Money in a Roth IRA and a Traditional IRA?

Recently, I’ve had several email questions about saving in a Roth IRA vs. a Traditional IRA. The questions came from people who had most of their retirement savings in a Traditional IRA and were wondering if they should (1) start saving in a Roth, or (2) roll over the money in a Traditional IRA. In my replies to those questions, I’ve said that if most of your retirement saving is in a one … [Read more...]

Why We Converted Our Traditional IRA To A Roth IRA

As you probably already know, 2010 is a great time to convert your Traditional IRA to a Roth IRA.  The year is now more than half over, so I thought I’d share my thoughts on the Roth IRA Conversion. In 2010, you can convert a Traditional IRA to a Roth IRA even if you make over $100,000.  Also, you will pay taxes over a two year period and the first payment (1/2) isn’t due until April 2012 and … [Read more...]

Roth IRA and Traditional IRA Tax Implications in Plain English

When deciding between a Roth IRA and a Traditional IRA and the tax implications, you just need to remember one little fact.  You will pay taxes on that money.  The only questions are: when and how. There are other differences, like the IRA withdrawal rules, contribution limits, and income limits, but that is another post for another time.  In this article, we are going to focus on clearly … [Read more...]