The ROTH Conversion IRA is the special ROTH
account an individual taxpayer can establish to recieve (convert) all or any
part of a taxable Traditional IRA into a tax-sheltered
ROTH Both single taxpayers and married taxpayers filing
jointly with adjusted gross incomes generally under $100,000 in the
year of a conversion are eligible to contribute to a ROTH Conversion IRA.
Traditional IRA funds, the only eligible funds, converted to a ROTH
Conversion IRA are subject to income taxes in the tax year the funds
are withdrawn or distributed from the Traditional IRA. There is no limit
to the dollar amount eligible to be converted to a ROTH Conversion
IRA. Distributions fro a 401(k), 403(b) or other employer retirement
plan must first be enrolled into a Traditional IRA before being eligible for a
ROTH Conversion IRA.
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