Active funds do not always add value in the long term or during volatile market conditions. Still not convinced? … Read more
Succession planning can sometimes feel like trying to exit Bank Underground station … Read more
The second date for this hugely popular academy accounts workshop. This event will provide practical information about preparing accounts … Read more
130 Wood Street, London, EC2V 6DL
enquiries@buzzacott.co.uk T +44 (0)20 7556 1200
Generally, subsequent withdrawals from a Roth IRA are not taxable, and no minimum distribution is required each year after reaching age 70 ½ (unlike for traditional IRAs). Conversions are taxable in the US at ordinary Income Tax rates and so will create a tax charge for 2018 that must be met by other sources of cash. However, given the flexibility that a Roth may bring, taxpayers who are more suited to a Roth IRA from an investment perspective may wish to consider making the conversion now. Where contributions into the 401(k) plan or traditional IRA also involve a period of foreign service, available foreign tax credits may be used to reduce the liability. No NIIT (Net Investment Income Tax) is due on any distribution, conversion or rollover to/from a Roth IRA account.
Some people may want to consider transferring their traditional IRA/401(k) plan into a Roth IRA before the end of 2018.
