Roth IRA Conversions, NontraditionallyRoth IRA Conversions, Nontraditionally
A Roth IRA is the same thing as a traditional IRA, but with special features,1 including: Contributions to a Roth IRA aren't tax deductible, while contributions to a traditional IRA might be. Contributions to a Roth IRA may be made even after age 70, as long as income doesn't exceed certain levels. Distributions are tax free, if any Roth IRA has existed for at least five years and the taxpayer is
Michael J. Jones
A Roth IRA is the same thing as a traditional IRA, but with special features,1 including:
Contributions to a Roth IRA aren't tax deductible, while contributions to a traditional IRA might be.
Contributions to a Roth IRA may be made even after age 70½, as long as income doesn't exceed certain levels.
Distributions are tax free, if any Roth IRA has existed for at least five years and the taxpayer is over age 59½.
Lifetime required minimum distributions (RMDs) do not need to be made (but RMDs must begin after death).
The two most common ways to contribute to a Roth IRA are through regular contributions and through conversions of other retirement accounts. Conversions often pack more value into a Roth IRA because, unlike regular contributions that are limited to annual maximum amounts that are subject to income-based phaseouts, conversions aren't limited by size or income.
And Roth IRA conversions aren't just for marketable securities. Nontraditional investments can be converted — they just take a little extra care. So here's how to put into Roth IRAs all those nontraditional assets, like real estate, limited liability companies (LLCs), limited ...
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