The Roth IRA Trap

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‘Tis the season many start thinking about converting regular IRA accounts into a Roth IRA. After all, unlike the taxable withdrawals out of a regular IRA account, funds coming out of a Roth are completely tax-free after age 59½.

Many individuals have made non-deductible contributions into their regular IRA accounts, thereby resulting in the IRA having a basis. A surprising number of these individuals believe that one can pull the basis out of the IRA and deposit that into a Roth IRA, for a tax-free conversion. Therein lies the trap.

One cannot pick and choose what part of the IRA is being …read more

Read more here:: Tax

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Aronson LLC has been thinking ahead for its clients for more than 50 years. Aronson’s construction, real estate, government contracting, nonprofit, technology and private industry experts provide innovative audit, tax, and consulting services that help its clients move to the next level. From start-up to exit strategy, Aronson works with companies throughout the entire business lifecycle by proactively identifying opportunities and addressing challenges so that clients are able to focus on their core business. Aronson shows companies how to rethink everything to be more profitable, more competitive and better prepared for the future.

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