Sep 1, 2010 12:00 PM

Consider the complex tax effects of rollovers and distributions

By Marcia Chadwick Holt

Beginning in 2010, individuals are allowed to convert or roll over certain distributions from retirement plans and IRAs to Roth IRAs regardless of their modified adjusted gross income. Complex rules apply. Here are some key points about how the rules work, some examples and how they could save you some income taxes. It will help you decide whether you want a Roth IRA.

If you're a Roth IRA owner, you can roll over amounts from one Roth IRA to another Roth IRA. If you're an IRA owner or a participant in a retirement plan, you can roll over or convert certain distributions to a Roth IRA. Such distributions include: distributions from a traditional IRA, SEP IRA or SIMPLE IRA (after two years) and eligible rollover distributions¹ from retirement plans.² If you receive the distribution first, you have 60 days within which to make the rollover or conversion to a Roth IRA to avoid income tax³ on the distribution. The rollover or conversion itself is taxable as discussed below.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

Poll

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

Press Releases