What are the benefits of converting my Traditional IRA to a Roth IRA?
A benefit to converting your Traditional IRA to a Roth IRA is that earnings on the assets are tax free when withdrawn. The contribution part of your asset has already been taxed when you converted and therefore is not taxable when you withdraw from your Roth. Another benefit is there are no Required Minimum Distributions on Roth IRAs. You may wait as long as you like to withdraw your funds or you may begin withdrawing anytime after you reach the age of 59 ½ and the five year holding period has been satisfied. Withdrawals can be made prior to age 59 ½ but are subject to a 10% penalty and taxation on the earnings attributable.
