Tag Archive: Roth IRA

Roth IRAs: A smart tax idea for children

Written by May 19, 2015

Persuading your working children to make retirement contributions may not be easy, but investments in Roth IRAs may be the wisest possible use of their earnings. The nature of Roth IRAs, coupled with the effects of long-term compounding, can create exceptional returns on such early investments. Although contributions to Roth IRAs are not deductible, earnings within the accounts (such as...

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Converting to a Roth IRA

Written by November 2, 2012

If you convert a traditional IRA to a Roth, there’s a price to pay. Converted amounts attributable to tax-deductible contributions, plus all of the earnings, are taxable at ordinary income rates. To lessen the tax hit, you may choose to convert only a part of your IRA to a Roth. You can convert as much as you like, or you...

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