I have an IRA in the 6 figures range. In 2010 anyone regardless of AGI will be allowed to convert IRA accounts to Roth IRA accounts. The advantage of this is that all future gains will be tax free.
The rules regarding what IRA investments can be in are rather loose so you are not restricted to just stocks, bonds and the usual stuff.
Under this conversion, I'll need to pay tax on the value of my account that has not previously been taxed.
I am thinking that there might be a way (loophole) to have my IRA invested in something that has an artificially low value at the time of conversion (2010) but has a high value in 2011 or other time in the future. What ideas do you have of such a scenario?
2007-02-12 17:51:47 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You'll pay taxes on the gains and the part you made tax-deductible. I don't think there's a way to avoid this when you convert it into a Roth IRA. In my opinion, it is best to pay the taxes now than later so that you can enjoy the tax benefits of a Roth IRA.
2007-02-12 18:07:25 · answer #1 · answered by Anonymous · 4⤊ 0⤋
What you're gonna have to realize is that the IRA, although banned by the English Parliament, will never be subdued. Historically, the English have had to be fought out of every country they have occupied and Ireland is no exception. Without the proper representation in the British government, the IRA is forced to resort to military guerrilla tactics to obtain their freedom. The sooner they gain political and social sovereignty, the sooner the violence and terrorist bloodshed can stop. Or maybe you should consult a CPA for questions like this as opposed to using yahoo as a way to point out that you have a six figure account, and that your life problems consist of trite rich-boy B.S that no one but you, and possibly the people you were trying to impress with your "question", care about.
2007-02-12 18:02:48 · answer #2 · answered by Tucson Hooligan 4 · 0⤊ 0⤋
Are you speaking related to the present day conversion cut back of $a hundred,000? each time in the previous 2010, taxpayers are constrained to transform from classic IRA to Roth IRA provided that they've below $a hundred,000 changed adjusted gross earnings. This restrict disappears in 2010.
2016-10-02 01:37:53 · answer #3 · answered by ? 4 · 0⤊ 0⤋
you need a financial advisor/attorney to take you through it. you don't need a banker/accountant who wants your business.
you'll pay for the advice, but save a good deal in taxes.
2007-02-12 18:07:08 · answer #4 · answered by de bossy one 6 · 0⤊ 0⤋