Having a Roth Individual Retirement Account (IRA) can be a good way for retired individuals to receive tax-free income. The distributions are non taxed once a person has the account for at least five years and turns 59 ½ years of age. Converting a traditional IRA into a Roth IRA can be costly for tax reasons. The total tax bill can be up to 50% for high income individuals when you factor in federal, state, and local taxes. This article discusses some of the hands-off planning techniques that can be used by high income individuals to benefit from Roth IRAs. It is a good idea to speak with a competent financial adviser to discuss the different Roth IRA options that are available.
See Donald Jay Korn, How High-Income Clients Can Get in on Roth IRAs, Financial Planning, September 10, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
