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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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 See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...