Salient to Investors:
The IRS said conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, and the first time Roth conversions were greater than contributions. More than 10 percent of IRA holders with annual incomes exceeding $1 million converted.
A 2006 law set 2010 for ending a $100,000 income limit on Roth conversions, with no ceiling on conversions if an investor has multiple IRAs and no cap on the amount that can be shifted.
Thomas Rowley at Invesco said wealthy investors could better manage their tax liability in retirement and pass the Roth accounts to heirs free of income tax – it is the cheapest estate planning you can find and you are paying the taxes for these beneficiaries.
Read the full article at http://www.bloomberg.com/news/2014-01-03/tax-break-for-ira-conversion-lured-10-of-millionaires.html
Click here to receive free and immediate email alerts of the latest forecasts.
The IRS said conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, and the first time Roth conversions were greater than contributions. More than 10 percent of IRA holders with annual incomes exceeding $1 million converted.
A 2006 law set 2010 for ending a $100,000 income limit on Roth conversions, with no ceiling on conversions if an investor has multiple IRAs and no cap on the amount that can be shifted.
Thomas Rowley at Invesco said wealthy investors could better manage their tax liability in retirement and pass the Roth accounts to heirs free of income tax – it is the cheapest estate planning you can find and you are paying the taxes for these beneficiaries.