What are the benefits of making a conversion from a Traditional IRA to a Roth IRA?
A Roth IRA provides the following potential benefits not offered by a Traditional IRA: • Contributions can be made at any age, even after age 70 ½ provided you still have earned income. • There is no minimum distribution requirement. • Once the plan has been open for at least five years, distributions are not subject to tax or government penalties.
Assuming you are eligible to convert, the benefits of making a conversion from a traditional IRA to a Roth IRA include: • Contributions can be made to your Roth IRA after you reach age 70½, whereas you cannot make additional contributions to a traditional IRA after attaining age 70½. • You can leave amounts in your Roth IRA as long as you live. In other words, unlike the traditional IRA, there is no minimum distribution requirement for amounts in a Roth IRA account. • Qualified Distributions from a Roth IRA are not subject to taxation or penalties, after the plan has been open for at least 5 years. var singleFaqId=”187″; Found in FAQ category: …Traditional IRA, GENERAL QUESTIONS, …
