Should you do a Roth conversion to take advantage of the current tax rates which may be lower now than they are likely to be in the future? It may be a good idea but check out the details before you take action as your tax bill may be higher than you think.
What if you can’t convert to a Roth IRA in 2010? Is 2010 really your last chance? The key to good tax planning is a future-orientation. You want to be asking the question, what can I do to lower my taxes in the future?
Most people know you can convert money from a traditional IRA to a Roth IRA. But Federal Employees may also be able to convert money from their Thrift Savings Plan or CSRS Voluntary Contribution Plan to a Roth IRA.
In 2010, there is no income limitation that affects your ability to convert a Traditional IRA to a Roth IRA. This doesn’t mean that you should rush right out and do a conversion. Here are some important factors to consider in order to determine whether a conversion makes sense for you.
In the past, many CSRS employees have been excluded from contributing to a Roth due to their income level. Here is information about a program that provides a way for CSRS and CSRS-Offset employees to get large sums into a Roth IRA.
We are in that time of year when Congress, the White House and others announce numbers for the next year. The number in which current employees are most interested was just announced – the “comparability increase” (aka your raise) will be about 2%. Here is how this raise compares with other numbers that impact you and your family.
As a federal employee, you cannot invest in a Roth IRA within the Thrift Savings Plan. But you may still have the option of using a Roth IRA to invest in your retirement future.
