Briefly Noted

Deadline Approaching for Roth IRA Conversions

A deadline for converting to a Roth IRA is quickly approaching. Investors have until the end of this month (December 2010) to defer taxes on a conversion.

A Roth IRA is funded with aftertax dollars. In other words, you pay taxes on dollars contributed into a Roth IRA. Future withdrawals are then eligible to be made on a tax-free basis, regardless of how much the account balance has grown. Conversely, a traditional IRA is funded with pretax dollars and withdrawals are taxed. This means you are taxed on the amount of the withdrawal, which includes the original deposit and any realized gain on that deposit—a big difference.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Register for FREE
to read this article and receive access to future articles.

Log in
Already registered with AAII? Login to read the rest of this article.


Richard from Connecticut posted over 3 years ago:

Please see my commentary on my blog/web site regarding the recent article about the RAND study (correlation between math skills and wealth) at

It's a different take on the matter.


Richard Wiegand


You need to log in as a registered AAII user before commenting.
Create an account

Log In