When Is A Conversion Of Traditioanl Ira to Roth Ira Not A Good Move?
February 26th, 2008 by admin
This is a very nice question my dear friend. Every people out there are thinking of benefits but nobody is realizing that there can be negative effects too if you convert traditional ira to roth ira. The rollover to no limit income may not be good for you if the additional income from the conversion for a said year somehow affect the income tax returns which are fixed to AGI, Adjusted Gross Income. If you expect to be in low income tax bracket after your retirement. Otherwise you will have to pay more taxes and if new rules are applicable in the near future regarding roth IRA. Now these are exceptions and you must take care while you convert the IRA so that you don’t lose in your deal and method.