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However, there are no limits on conversions. A taxpayer with a pre-tax IRA can convert any amount of funds in a year to a Roth IRA. Roth IRAs also are exempt from required minimum distributions ...
It’s important to note that a traditional IRA or traditional 401(k) that has been converted to a Roth IRA will be taxed and penalized if withdrawals are taken within five years of the conversion ...
Opening a Roth IRA after 60 means you don't have to worry about an early withdrawal penalty, but you'll have to wait five years to take out money tax-free.
But with 13 years of $120,000 Roth conversions already completed, the IRA balance requiring RMDs could be reduced to around $42,000 by age 73. Your first RMD would be just under $1,600.
The five years begins on the first day of the year in which you convert. Bottom line. A Roth IRA conversion may make sense for you depending on your situation, but it’s important to understand ...
Previously, you couldn’t contribute to a traditional IRA past the age of 70 ½, but that changed in 2020, so now there aren’t age restrictions in place for contributing to either a Roth or ...
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