Converting To A Roth? 12 Tips You Should Know

Roth IRAs are a great option for many investors who wish to set aside more money for retirement above and beyond the contribution limitations imposed on 401(k)s. They allow you to pay taxes on your contribution up-front in exchange for tax-free growth and tax-free distributions once you retire.

Recent legislation has given investors an opportunity to convert traditional IRAs into Roth IRAs, although there is some additional information that should be considered before making such a move.
This article helps to answer twelve frequently asked questions that arise when contemplating an IRA conversion. Perhaps most notably, the article explains what sort of timeline exists for declaring income on your tax returns, and what advantages exist for people who take action in the near future.

Read: Conversion Question by Robert Powell of Marketwatch.com