Comments on: Roth IRA Conversion Strategy to Avoid Taxes

By: 2010 Roth IRA Conversion Rules | Good Financial Cents

2010 Roth IRA Conversion Rules | Good Financial Cents — Thu, 12 Feb 2009 03:46:47 +0000

[...] this and that allows you contribute to a non-deductible IRA and then right immediately after wards convert it to a Roth IRA and avoid all taxable consequence. It’s a nice loophole that still allows you to continue [...]

By: Time To Convert Roth IRA | Good Financial Cents

Time To Convert Roth IRA | Good Financial Cents — Sat, 27 Dec 2008 07:26:03 +0000

[...] My Dollar Plan: Roth IRA Conversions [...]

By: Madison

Madison — Thu, 20 Nov 2008 19:41:05 +0000

@ Jenna: Here are the rules on the withdrawals: How to Make Early Roth IRA Withdrawals.

By: 143rd Festival of Frugality: Celebrity Edition | LivingAlmostLarge

143rd Festival of Frugality: Celebrity Edition | LivingAlmostLarge — Tue, 16 Sep 2008 14:45:16 +0000

[...] discusses taking advantage of the 2010 loophole for taxes in Roth IRA Conversion Strategy to Avoid Taxes posted at My Dollar Plan. Sounds good, but it might not be worth it depending on your income above [...]

By: Toys R Us Coupons and Age Discrimination

Toys R Us Coupons and Age Discrimination — Mon, 15 Sep 2008 00:43:24 +0000

[...] Dollar Plan, one of our resident retirement experts, shares a great strategy to avoid taxes when you do a Roth IRA conversion. Since we don’t have any deductible IRAs around, then I’m guessing we won’t have [...]

By: Friday Finance Findings for September 12th : Generation X Finance

Friday Finance Findings for September 12th : Generation X Finance — Fri, 12 Sep 2008 15:49:39 +0000

[...] Roth IRA Conversion Strategy to Avoid Taxes – The 2010 conversion date is rapidly approaching, and more people are gearing up to take advantage of converting retirement assets into a Roth. Even so,you want to make sure you’re doing it right and taking advantage of the conversion properly so you can minimize your tax burden. [...]

By: PK

PK — Thu, 11 Sep 2008 18:20:57 +0000

Don’t forget, contributions to a Roth account can be withdrawn at any time penalty-free. The 5 year seasoning period only exists on certain transactions.

By: CF

CF — Thu, 11 Sep 2008 16:47:53 +0000

Good suggestion; I would only caution people to consider investment options and expenses before using this strategy. For example, all of my IRAs are with Vanguard in Index Funds. If I were to move them into my 401K, the options would be MUCH fewer, and the expense ratio would be much higher. Of course, this is only my scenario, but I would argue that most people don’t have the range of choices and options for low expense funds in their 401K as they do for IRAs.

By: Jenna

Jenna — Thu, 11 Sep 2008 15:34:42 +0000

This is an excellent strategy, but I did have a question.

I thought that while withdrawing the principle out of a Roth IRA was tax free, but any interest you may have earned was not?