Quick Note from Sunwest Trust on ROTH IRA Conversions
Roth conversions from traditional IRA’s
I hope everyone had a safe and fun Christmas holiday. I’m sure this is a very busy week for everyone, but I just wanted to make a quick reminder about Roth Conversions. As I’m sure most of you know, the IRS has dropped the income limitations for now, if you are converting your Traditional IRA to a Roth. You will also be given the option to split up the taxes and pay them over the next two years.
Don’t forget the December 31st deadline
If you are planning on doing a conversion from a Traditional to a Roth IRA, you must have it done before December 31st. To get this accomplished, you will need to go to the forms section of our Website and fill out the form called “Internal Conversion Form to Convert a Traditional IRA to a Roth IRA“. This form will need to be filled out and emailed or faxed to our office by December 31. If you do not get this form to our office by Friday, then you will not be eligible for a conversion this year and you will not be able to split up the taxes over the next two years.
Consult a professional, then take action!
We strongly urge you to consult with your CPA or tax professional, if you have any questions about converting your IRA to a Roth. It may not be right for your particular situation, but in many cases a Roth IRA can be a very valuable retirement tool. I have not heard anything about extending this opportunity to convert your IRA for highly compensated individuals. If these income limitations apply to you, then this may be a once in a lifetime opportunity to convert your Traditional IRA into a Roth IRA.