Rollover - A distribution from a traditional IRA can be contributed to a Roth IRA within 60 days after distribution. Trustee-to-trustee transfer - The financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA with another financial institution.

You must perform this conversion before you transfer your IRA to IB. Your Modified Adjusted Gross Income can't exceed $100,000 (single or joint filers) in the year of the conversion.

Yes. Tax law provisions allow you to convert (roll over) your Traditional IRA to a Roth IRA. Certain eligibility requirements (income and tax filing status) apply, such as: your AGI cannot exceed $100,000, and married individuals filing separately may not convert Traditional IRAs to Roth IRAs. Conversion is considered a taxable distribution from your current Traditional IRA for prior earnings and deductible contributions, but not subject to the 10% penalty tax.

Maybe. If your modified adjusted gross income is $100,000 or less (in the year you switch) you qualify to transfer an existing (Traditional) IRA into a Roth IRA. However, married taxpayers filing separately cannot make such a transfer. Keep in mind taxes will have to be paid on the amount transferred from an existing (Traditional) IRA at the time the switch is made. Therefore, if you should transfer or not depends on your specific situation.

You will have to pay income taxes on all tax-deductible Traditional IRA contributions and earnings converted to a Roth IRA, in the same year as the conversion (except in the year 1998, when you were allowed to spread the payments over a four year period). If you do not expect to have enough money (from a non-IRA source) to pay the income taxes, you are probably better off not converting.

You can easily convert a Traditional IRA into a Roth IRA without any penalties. However, deferred taxes on the Traditional IRA must be paid upon conversion.

No, partial conversions are allowed, as are conversions from a number of different Traditional IRA's. You may wish to make a partial conversion if you do not want to face the tax expense of a full conversion in one tax year.

Yes, you can. But remember that you can only contribute up to $3,000 per year to any combination of Traditional and Roth IRAs that you have. You cannot contribute $3,000 to each.

Yes, as long as the amount of your contributions does not exceed $4000. For example, if you were eligible to make a $2000 deductible contribution to a Traditional IRA, you can also make a $2000 non-deductible contribution to a Traditional or Roth IRA.

The Roth IRA was first introduced in 1998, quickly gaining popularity as the new retirement planning investment vehicle. The main difference between the Roth IRA and the Traditional IRA is that contributions to a Roth IRA are not tax deductible and therefore come from after-tax income. However, the income generated by the Roth IRA is tax-free upon qualified withdrawal. In other words, traditional IRAs offer tax deferral while Roth IRA earnings are

The contribution limits for both the Traditional and Roth IRA for 2006 and 2007 is $4,000 with a "catch up" contribution of $1,000 for those age 50 and over. There are several factors to determine the deductibility of Traditional IRA contributions and the eligibility of Roth IRA contributions based upon adjusted gross income and participation in other retirement plans.

While the Traditional and Roth IRA have different eligibility requirements, the main difference between the Roth IRA and the Traditional IRA is when taxation occurs. A traditional IRA is considered "Pre" tax thus reducing your taxable income in the year contributed. A Roth IRA is "Post" tax thus not reducing your current year taxable income. When distributions are taken after 59 ? from a Traditional IRA both the contributions and the earnings will be part of your taxable income.

A Roth IRA offers significant advantages over a traditional IRA. Chief among them is that the income earned by your Roth IRA, in most cases, is not taxable when you receive it after your retirement (age 59½). Also, Roth IRAs are generally not subject to the required minimum distribution rules that apply to traditional IRAs for persons age 70½.

No. IRAs may only be transferred to the same type of IRA (i.e. Traditional to Traditional, Roth to Roth, etc.) Also note that IRAs cannot contain any margin loans, short positions, or equity option positions.

There is no limit on the amount that can be converted to a Roth IRA as long as your modified adjusted gross income is below $100,000 per year. Not so. Any amount can be converted to a Roth IRA if you meet the $100,000 per year income limit. However, only $3,000 in 2003 can be contributed to a Roth IRA subject to certain income limits. Investors 50 years old or above may make an additional "catch-up" contribution of $500, bringing their total to $3,500 for the year.

If your Traditional IRA is not held at Schwab, you can convert a Traditional, SEP or SIMPLE IRA (after a two year holding period is met) at another institution to a Schwab Roth IRA using either: Transfer your IRA to an identical IRA at Schwab. When the transfer is complete, you can initiate the conversion to a Roth IRA. Convert your Traditional, SEP or SIMPLE IRA to a Roth IRA while custodied at your other institution.

Anyone can convert their retirement funds to a Rollover IRA and then to a Roth IRA if they meet certain income limits. Your modified adjusted gross income as a single or married filing jointly taxpayer must be $100,000 or less in order to convert to a Roth IRA. Also, you must be able to pay the income tax you will owe on the converted amount from some other income source. You can’t use your Roth IRA funds to pay your conversion taxes.

Anyone under age 70½ with earned income can contribute up to $4,000 per year to a Traditional IRA. However, whether or not you qualify to deduct your contributions is determined by whether you or your spouse participate in an employer-sponsored retirement plan and the amount of your adjusted gross income (AGI). of 2005, any person at any age can contribute up to $4,000 per year to a Roth IRA as long as you or your spouse have earned income and your AGI is within established income limits.

A conversion is a taxable movement of assets from a Traditional IRA to a Roth IRA. The amount converted will be subject to full taxation in the year of the conversion. The funds, however, will not be subject to the 10% premature distribution penalty.

The biggest difference in the two types of IRA accounts is that the Traditional IRA includes tax differed earnings, income replacement for retirement, and, in some cases, an income tax deduction. Members defer paying the taxes until they are retired and in a lower tax bracket A Roth IRA allows only nondeductible contributions but features tax-free withdrawals for certain distribution reasons after a five-year holding period and reaching 59 ½ years old.

The annual maintenance fee for both a traditional IRA and a Roth IRA is $10. This fee is per type of account. So, for example, if you have a traditional IRA account with money invested in each of five funds, your annual maintenance fee would be $10. If you have a traditional IRA account and a Roth IRA account, each with investments in one or more funds, your maintenance fee would be $20. The fee for termination, rollover, or transfer of account to a successor custodian is $10.

You must complete the conversion within 60 days. Because Tax penalties can be assessed if not handled properly, we recommend that you check with a North Shore Bank Investment Advisor or your tax advisor before initiating this type of transaction. No. Unlike with traditional IRAs, which require distributions to begin at age 70, your earnings can continue to grow in a Roth IRA until you need them.

Yes, but the total combined contribution for the year may not exceed the maximum contribution described above. You must decide whether it is better to make a contribution to a traditional IRA, which might give you an immediate tax deduction, or contribute to a Roth IRA where you forgo the deduction but have the possibility of long-term growth that may later go untaxed.