IRA Beneficiary
36. Roth IRA
Because of these benefits, you may want to consider converting some or all of your tax-deferred savings to a Roth IRA...especially now.
Previously, if your adjusted gross income was $100,000 or more, you did not qualify for the conversion. But the income restriction has been eliminated, so everyone is now eligible to convert some or all of your tax-deferred savings to a Roth IRA.
You can roll over amounts from your traditional IRA and from eligible retirement plans, which include qualified pension, profit sharing or stock bonus plans such as 401(k)s; annuity plans; tax-sheltered annuity plans; and deferred compensation plans of a state or local government. You do not have to roll these into a traditional IRA first.
Of course, you will have to pay income taxes on the amount you convert; it will be included in that year's income. But, remember, all future growth and withdrawals will be tax-free.