Sentences with phrase «tax upon the conversion»

Those funds hadn't been taxed ever before, so they would be subject to full income tax upon conversion.

When Rick decides to convert any of that money into a Roth IRA, 50 % of it would be tax - free while the other 50 % would be taxed upon the conversion.

Not exact matches

It does not discuss all aspects of U.S. federal income taxation that may be relevant to particular holders in light of their particular circumstances or to holders subject to special rules under the Code (including, but not limited to, insurance companies, tax - exempt organizations, financial institutions, broker - dealers, partners in partnerships (or entities or arrangements treated as partnerships for U.S. federal income tax purposes) that hold HP Co. common stock, pass - through entities (or investors therein), traders in securities who elect to apply a mark - to - market method of accounting, stockholders who hold HP Co. common stock as part of a «hedge,» «straddle,» «conversion,» «synthetic security,» «integrated investment» or «constructive sale transaction,» individuals who receive HP Co. or Hewlett Packard Enterprise common stock upon the exercise of employee stock options or otherwise as compensation, holders who are liable for the alternative minimum tax or any holders who actually or constructively own 5 % or more of HP Co. common stock).

Financial Freedom presents Roth Contributions, posted at Retirement Spreadsheet, saying, «The Roth tax optimization puzzle for asset conversions, as well as for annual Roth contributions during working years, is one of the most complex decisions that the ridiculously complex US taxation and retirement planning system forces upon individuals.»

Your traditional IRA will be shrunken, and hence so too will the tax bill due upon conversion.

Since my wife and I have some investments in both Traditional 401ks and Roth 401ks, upon retirement we will roll them over into their respective IRA account and therefore incur no immediate tax consequences on either conversion.

Financial Freedom presents Roth IRAFinancial Software, posted at Financial Freedom, saying, «The Roth tax optimization puzzle for asset conversions, as well as for annual Roth contributions during working years, is one of the most complex decisions that the ridiculously complex US taxation and retirement planning system forces upon individuals.»

Since a Roth conversion is a distribution, and knowing what we know from # 1 & # 2 above, part of your conversion would be taxed and part of it would be tax - free — and the amounts would be pro-rated, based upon a calculation factoring your end - of - year balances in all of your IRA accounts, plus any amount that was distributed during the year.

Since the contributions to the traditional IRA are post-tax contributions (you have already paid tax on this money), only the earnings will be taxable upon conversion.»