ROTH IRA CONVERSIONS
01.Core Concepts
• Conversion to Roth IRA can be done from a qualified plan or traditional IRA. • Results in income to the extent the converted amount is pre-tax. • Generally, best to pay taxes from funds outside the IRA. • May result in lower taxable income in retirement, which may result in less Social Security income subject to tax and lower Medicare Parts B & D premiums (see Chapter 14 for SS & Medicare).